Nearby ICE Canola Contracts Down On Spec Liquidation
| 1 min read
| By Dwayne Klassen, Resource News International |
| February 24, 2010 |
| Winnipeg – The nearby canola contracts on the ICE Futures Canada platform were trading at lower levels at midday while the deferred contracts were posting fractional advances. Chart-based speculative liquidation accounted for some of the declines seen in the March, May and July contracts, market watchers said. An upward rebound in the value of the Canadian dollar was also an undermining price influence. Some of the early selling in canola was also inspired by the losses seen overnight in Malaysian palm oil futures, brokers said. A key feature of the activity continued to be the rolling out of positions out of the nearby March contract and into the May future, brokers said. Commercials were the featured participants in that activity. A drop off in export demand helped to weigh on canola as did the large global oilseed supply situation. Support in canola was coming from the small advances seen in CBOT soybean futures and from increased domestic processor demand due to improved crush margins, traders said. There were an estimated 7,460 canola contracts traded at 10:58 CST. Of the contracts traded, 5,706 consisted of spreads. There were 53 western barley futures traded as of 10:58 CST. Activity in barley was a light two-sided commercial affair, brokers said. |
