ICE Canada Review: Strong Cdn dollar weighs on canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 27, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Thursday’s session with declines with the upturn in the value of the Canadian dollar prompting some of the downward price momentum, market watchers said. The strong Canadian was said to have caused exporters to take to the sidelines.
Commodity fund liquidation orders also contributed to the price weakness experienced by canola. The favourable weather conditions across western Canada for the early planted canola fields helped to spark some of the price weakness, brokers said. The potentially record sized area planted to canola also was an undermining price influence. Some late day hedge selling by elevator companies also weighed on canola prices. The losses in canola were limited in part by scale down domestic crusher demand and the advances seen in CBOT soybean and soyoil futures, traders said. The pricing of old export business to Japan by commercials also restricted the downward price slide. Spreading was a feature of the activity in canola and helped to augment the volume total. There were an estimated 10,364 canola contracts traded Thursday, down from 10,803 during the previous session. Western barley futures actually saw some trade Thursday with the nearby July experiencing most of the activity. The July future was pushed higher as market players tried to buy their way out of the contract before it expires later this month, brokers said. There were 9 barley contracts that changed hands during the session. On Wednesday, no barley contracts were traded. |
