ICE Canola Weakens On Strong C$, CBOT Declines
| 1 min read
| By Dwayne Klassen, Resource News International |
| January 6, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at generally weaker price levels at midday with the strong Canadian dollar and the losses in the CBOT soybean complex stimulating the downward price momentum, market watchers said. Generally favourable crop conditions for the South American soybean crop helped to influence some light selling in canola, brokers said. The taking of profits by a variety of market participants contributed to the bearish sentiment in canola with a steady ‘trickle’ of canola being delivered into the cash pipeline by producers helping to keep the commodity on the defensive, traders said. They noted that at some locations in western Canada, producers are receiving C$9.00 a bushel for canola, which was enough to entice farmer movement. The backing away from the market by domestic processors was also an undermining price influence. Strong support under canola, however, was coming from fairly aggressive commercial demand, believed to be pricing fresh export business, traders said. Friendly chart signals were also helping to provide some underlying support for canola. There were an estimated 3,444 canola contracts traded at 10:17 CDT. There were 5 western barley futures traded as of 10:17 CDT. Light commercial selling was being absorbed by minor commercial demand at the lows, brokers said. |
