ICE Canola Futures Soften On Demand Absence
| 1 min read
| By Dwayne Klassen, Resource News International |
| August 12, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to slightly softer price levels at 9:27 EDT. The absence of fresh demand and the need to absorb the USDA’s latest supply/demand numbers allowed canola values to drift to slightly weaker territory, market watchers said.
The USDA in its supply/demand balance sheets this morning, lowered its estimates of world wheat, corn and soybean supplies. However, US grain and soybean crop production projections were increased. Some of the bearish price sentiment in canola continued to come from the improved crop prospects for the crop in western Canada, brokers said. Estimates for Canada’s canola crop now range in the 11.0 million metric ton area compared with 9.0 million previously. The big commercials, who make most of the purchases for domestic crushers and exporters also have backed away from the market allowing light sell orders to push canola values slightly lower, traders said. Losses overnight in Malaysian palm oil futures were viewed as an undermining price influence on canola. The losses in canola, however, were not expected to continue as the higher calls for CBOT soybean and soyoil futures with the start of the North American day session could spur an upward push. As of 9:27 EDT, there were 1,043 canola contracts traded. As of 9:27 EDT, no western barley contracts had been traded. |
