ICE Canola Futures Weaken As CBOT Soybeans Seen Down
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| November 26, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower price levels at 9:31 EST. Declines overnight in overseas vegetable oil markets and lower calls for CBOT soybean values with the start of the North American day session, stimulated the downward price action, market watchers said.
Malaysian palm oil futures ended with small declines overnight as did European rapeseed futures. CBOT soybean futures were being called down 10 to 15 US cents per bushel on the open Friday morning, which prompted some speculative fund liquidation of long canola positions, brokers said. The absence of fresh export demand was an undermining price influence with light elevator company hedge selling adding to the bearish price atmosphere, analysts said. The evening up of positions ahead of the weekend and next Friday’s Statistics Canada production update was a feature of the activity. Some underlying support in canola came from steady domestic crusher demand and some scale down pricing of old export business to Japan and Mexico, brokers said. The rolling out of the nearby January canola future and into the March contract was also a feature of the activity, brokers said. As of 9:31 EST, there were 1,237 canola contracts traded. As of 9:31 EST, no western barley contracts had been traded.
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