ICE Canola Weakens As Line Company Selling Picks Up
| 2 min read
| By Dwayne Klassen, Resource News International |
| February 9, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at midday with declines a function of increased line company selling and the downturn seen in the CBOT soybean complex, market watchers said.
Good volumes were being posted in canola with much of that activity the rolling of positions out of the March future by commodity fund accounts and into the May contract, traders said. Canola futures had traded higher in early activity with strength linked to the gains seen overnight in Malaysian palm oil and European rapeseed futures, brokers said. Routine pricing of old export business and some steady domestic crusher demand had also influenced some early support in canola. The higher calls for CBOT soybean and soyoil futures with the start of the North American day session had also bolstered canola futures, brokers said. Early strength in the Canadian dollar had limited the upside in canola, but when the Canadian currency began to pull-back in value, canola managed to find some light support. However, at the highs for the morning, grain company selling picked up and helped to take canola off its highs and some contracts slightly lower. The losses in canola were augmented by the sell-off experienced in CBOT soybean and soyoil values, traders said. Traders said there were ample sell-orders in canola just above current levels. Adding to the bearish price sentiment in canola were the huge supplies of the commodity in Canada and the pending record large soybean harvest in South America, traders said. The absence of fresh export demand for canola was also putting some contracts on the defensive. There were an estimated 13,331 canola contracts traded at 10:31 CST. Of the contracts traded, 10,678 were spread related. There was no western barley futures traded as of 10:31 CST. |
