ICE Canola Weakens, Funds Seen Adding To Short Positions
| 1 min read
| By Dwayne Klassen, Resource News International |
| January 28, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels at midday with much of the downward price slide associated with commodity funds adding to their already large short position in the market, industry sources said.
Chart related liquidation orders by speculative accounts helped to weigh on canola, brokers said. They noted that market participants were trying to push the nearby March future below the contract low of C$373.50, and may succeed before the end of the session. The absence of fresh export business being put on the books contributed to the price weakness seen by canola as did reduced demand from domestic processors, traders said. Firmness in the Canadian dollar early Thursday along with weakness in global crude oil futures, helped to augment the bearish price sentiment in canola. The pending record large soybean harvest in Brazil was also an undermining price influence. The downturn in CBOT soybean and soyoil futures were also adding to the price weakness in canola, brokers said. Traders said there were some commercial bids under the market, with most of that interest said to be covering routine export demand to Japan and Mexico. There were an estimated 5,879 canola contracts traded at 10:29 CST. Of the contracts traded, 3,188 were spread related. There were no western barley futures traded as of 10:29 CST. |
