ICE Canola Futures Ease As C$ Recovers
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 18, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels at 9:45 EDT. The upswing in the value of the Canadian dollar was viewed as an undermining price influence with the favourable weather conditions in western Canada for seeding and crop development also adding to the bearish price atmosphere, market watchers said.
The strength in the Canadian dollar was said to have caused domestic crushers to temporarily back away from the market. Commercials, who had been pricing old export business to Japan, were also believed to have stepped away from the market. Some early strength that had been seen in canola came from the advances overnight in Malaysian palm oil and eCBOT soybean values, brokers said. The upturn in global crude oil had also provided some minor strength. The steady to higher calls for CBOT soybean futures with the start of the North American day session was also helping to restrict the downside seen in canola, brokers said. The absence of significant hedge selling by grain companies, as producers concentrate on spring seeding operations instead, also generated some minor strength for canola, brokers said. As of 9:46 am EDT, there were 259 canola contracts traded. As of 9:46 am EDT, no western barley contracts had been traded. |
