ICE Canada Review: Canola Eases On Firm C$
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 3, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Monday’s session mainly lower with the firm Canadian dollar and the declines seen in CBOT soybean futures behind the downward price slide, market watchers said.
Activity was described as light and choppy by market participants with spreading only a small feature of the trade. Some minor position evening ahead of the grain stocks in all positions report scheduled to be released by Statistics Canada on May 10, also was a feature of the activity. Canola contracts had found some early support from the gains seen overnight in Malaysian palm oil and European rapeseed futures. Some light follow through buying from Friday’s advances had also influenced some strength, brokers said. The buying back of previously sold positions by fund accounts had also generated some early support. The advances seen in CBOT soyoil futures had also encouraged some gains. The upside however, in canola was offset the lack of follow through demand. The firmness of the Canadian currency was said to have discouraged domestic processors from being aggressive buyers, brokers said. The absence of fresh export demand also was an undermining price influence. The losses experienced by CBOT soybean values helped to augment the price declines seen in canola with the record canola area in western Canada and the improved growing conditions in view of recent precipitation also added to the bearish price atmosphere, traders said. Light, but steady hedge selling also encouraged some of the price weakness. There were an estimated 7,212 canola contracts traded Monday, down from 8,652 during the previous session. Of the contracts traded, 2,580 consisted of spreads. Western barley futures were untraded and unchanged Monday. No barley contracts changed hands during the session. On Friday, no barley contracts were traded. |
