ICE Canada Review: C$ Prompts Fresh Selling Of Canola
| 2 min read
| By Dwayne Klassen, Resource News International |
| April 20, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Tuesday’s session on a steady to mostly weaker footing with much of the downward price momentum associated with fresh selling prompted by the firm Canadian dollar, market watchers said. Only the nearby May contract moved up.
The Canadian unit had moved above parity with the US dollar during Tuesday’s session, sparking some liquidation orders from domestic processors as well as from commercials, who had been pricing old export business to Japan, traders said. Favourable weather conditions for spring fieldwork and planting operations in western Canada further contributed to the price weakness in canola, brokers said. Weather outlooks calling for rain in some of the drier areas of Alberta later in the week was also viewed as an undermining price influence. Prospects of record area being planted to canola in western Canada this spring also generated some of the downward price action, brokers said. Statistics Canada will release its first acreage survey on Monday, April 26. Ample global oilseed supplies also continued to add to the bearish price atmosphere in canola, traders said. The losses in canola were tempered by the advances seen in CBOT soybean and soyoil futures. The buying back of previously sold positions by commodity fund accounts also helped to restrict the downward price momentum seen in canola, brokers said. A drop off in the level of elevator company hedge selling also provided some underlying support for canola. Spreading was a feature of the activity in canola and helped to augment the volume total. There were an estimated 19,656 canola contracts traded Tuesday, up from 11,364 during the previous session. Western barley futures were untraded and unchanged Tuesday. No barley contracts changed hands during the session. On Monday, there were 16 barley contracts traded. |
