ICE Canola Weakens as CBOT Soybean Losses Expand
| 1 min read
| By Dwayne Klassen, Resource News International |
| January 14, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels at midday. Early weakness in canola was linked to the strength of the Canadian dollar and the continued absence of fresh export demand, market watchers said.
The bearish sentiment in canola was also tied to the large US and world soybean supply situation and the pending harvest of a record large South American soybean crop, traders said. Bearish chart signals contributed to the downward price slide experienced by canola. Adding to the price weakness in canola were the lower calls for CBOT soybean and soyoil futures. While both commodities opened mostly lower, the weakness in canola was amplified when the declines in both CBOT soybeans and soyoil expanded toward midmorning, brokers said. Some underlying support in canola came from sentiment that values have now reached oversold price levels and are in need of an upward correction. Scale-down exporter pricing of old export business was also an underpinning price influence for canola. The absence of producer offerings of canola into the cash pipeline due to extremely unattractive cash bids from elevator companies also helped to restrict the price declines in the commodity, traders said. There were an estimated 8,339 canola contracts traded at 10:24 CST. There were no western barley futures traded as of 10:24 CST |
