ICE Canola Futures Weaken On Overbought Sentiment
| 1 min read
| By Dwayne Klassen, Resource News International |
| August 6, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to slightly easier price levels at 9:36 EDT. Sentiment that values were overbought and in need of a downward correction helped to fuel some of the early selling interest, market watchers said.
Profit-taking was an undermining price influence with a drop off in fresh export demand adding to the price weakness. The mixed price tone in e-CBOT soybean futures overnight failed to provide any solid price direction. European rapeseed futures were lower overnight while Malaysian palm oil moved to higher ground. The steady to slightly weaker calls for CBOT soybean futures with the start of the North American day session was exerting some small downward price pressure on canola, brokers said. Indications that the canola crop in western Canada has seen some improvement in recent weeks was also seen putting some downward pressure on canola futures. Some position evening ahead of the weekend was a feature of the activity. Some positioning ahead of next week’s batch of reports due out from the USDA was also anticipated. Underlying support in canola was coming from steady domestic crusher demand and the pull-back in the value of the US dollar, traders said. A slow down in the level of deliveries being made by canola producers was also viewed as supportive for prices, traders said. As of 9:36 EDT, there were 1,279 canola contracts traded. As of 9:36 EDT, no western barley contracts had been traded. |
