ICE Canada Review: Canola Closes Mostly Higher On Weak C$
| 1 min read
| By Phil Franz-Warkentin, Resource News International |
| May 20, 2010 |
| Winnipeg – ICE Futures Canada canola contracts closed mostly higher on Thursday, with sharp weakness in the Canadian dollar helping encourage some exporter and domestic crusher pricing, according to traders. The nearby July contract posted the largest advances, while the new crop months were steady to lower in many months as favourable growing conditions weighed on values.
Widespread economic uncertainty in the outside financial and commodity markets caused the Canadian dollar to drop by nearly two cents relative to its US counterpart on Thursday. The weaker currency helped improve domestic crush margins and also made canola more attractive to exporters pricing in US dollars, according to a broker. However, aside from the Canadian dollar related buying interest, most of the news in canola was bearish on Thursday. The broker noted farmer hedges were finally starting to come forward, after being absent for most of the week. The active planting pace and generally favourable crop conditions across most of western Canada were also putting some downward pressure on canola prices, according to traders. Weakness in crude oil also accounted for some spillover selling. About 11,197 contracts traded on Thursday, down from Wednesday when an estimated 16,673 contracts traded. Spreading was a feature in canola, accounting for the bulk of the trading volumes as participants started to roll out of the nearby July contract. Western barley futures were untraded an unchanged on Thursday. The nearby July contract was holding steady at 145.50 per ton. Prices are in Canadian dollars per metric ton. |
| Price | Change | ||
| Canola | |||
| Jul | 379.00 | up 3.40 | |
| Nov | 383.60 | up 0.30 | |
| Jan | 388.70 | unch | |
| Western Barley | |||
| Jul | 145.50 | unch | |
| Oct | 145.50 | unch | |
