ICE Canada Review: Canola Sets New Lows On Strong C$
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 11, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Tuesday’s session on the defensive with a number of contracts establishing new lows. The upswing in the value of the Canadian dollar was the key undermining price influence although some chart-based speculative offerings added to the downward price slide, market watchers said.
Activity was on the lighter side although spreading did help to bolster the volume total in canola. The strong Canadian dollar helped to push export business, both old and new, to the sidelines, traders said. The improved soil moisture situation across the Canadian prairies and weather outlooks calling for the return of warmer temperatures were also undermining price influences, brokers said. The warmer readings were seen drying up fields to allow additional seeding progress and would be beneficial for crops already planted. Light, but steady hedge offers from grain companies contributed to the price declines. Some underlying support in canola came from scale down domestic crusher demand and from the buying back of previously sold positions by a variety of market participants, brokers said. The advances seen in CBOT soybean and soyoil futures also provided some limited support for canola. There were an estimated 9,577 canola contracts traded Tuesday, down from 14,786 during the previous session. Of the contracts traded, 3,860 consisted of spreads. Western barley futures were untraded and unchanged Tuesday. No barley contracts changed hands during the session. On Monday, no barley contracts were traded. |
