ICE Canola Recovers On Oversold Price Sentiment
| 1 min read
| By Dwayne Klassen, Resource News International |
| January 13, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher levels at midday. Sentiment that values were oversold and in need of an upward correction helped the canola values move up, market watchers said.
Additional support came from the upward price recovery in the old crop CBOT soybean contracts, traders said. The surfacing of some domestic processor demand for canola helped to encourage some of the upward price action with the pricing of old Japanese business also seen as an underpinning price influence. The buying back of previously sold positions by a variety of market participants was also evident and helped to generate some minor support in canola. The slow pace of farmer deliveries into the cash market also was friendly for values. Weakness in canola, earlier in the session, had stemmed from follow-through selling from the declines seen on Tuesday and the weakness displayed by the oilseed markets overnight, brokers said. Strength in the Canadian dollar and the absence of fresh export business being put on the books also was an undermining price factor. Much of the early liquidation orders came from commercials and the speculative sector, traders said. There were an estimated 4,933 canola contracts traded at 10:32 CST. Of the contracts traded, 1,144 were spread related. There were no western barley futures traded as of 10:32 CST |
