ICE Canola Futures Soften As Outside Oilseeds Weaken
| 1 min read
| By Dwayne Klassen, Resource News International |
| August 10, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to weaker price levels at 9:16 EDT. Declines in Malaysian palm oil futures overnight and losses in eCBOT soybean values helped to encourage some of the selling seen in canola, market watchers said.
The lower calls for CBOT soybean and soyoil values with the start of the North American day session also inspired some of the downward price action, brokers said. Adding to the bearish price sentiment in canola were reports of better than expected yields in the small amount of canola that has been harvested to date across parts of western Canada, traders said. Profit-taking and overbought market conditions after the recent sharp run up in values also continues to weigh on canola futures. Steady hedge selling by grain companies also remains an undermining price influence. Underlying support in canola continues to come from steady domestic crusher demand and the pricing of old export business, brokers said. There also continues to be talk of fresh export business being conducted, but confirmation of any sales remains lacking, traders said. Activity in canola was on the light side, with few market participants wanting to establish large positions ahead of Thursday`s supply and demand report due out from the USDA. As of 9:15 EDT, there were only 414 canola contracts traded. As of 9:15 EDT, no western barley contracts had been traded. |
