ICE Canada Review: Weak C$, Exports Underpin Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| January 20, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished Wednesday’s session mostly on the defensive, but values were well supported throughout the day. Weakness in canola was associated with the sell-off experienced by CBOT soybean and soyoil values while the pull-back in the value of the Canadian dollar and steady export demand kept a firm floor under the commodity, market watchers said.
Steady commercial demand, believed to be covering fresh export demand as well as some crusher needs, provided a strong floor for canola during the day, traders said. Helping to underpin prices was the weakness in the Canadian dollar, which made canola more attractive on the export market. Oversold price sentiment helped to generate some support as did a slow down in farmer selling. Much of the downward price action seen in canola came from the losses seen in CBOT soybean and soyoil futures. Some chart related speculative selling was also evident and helped to put some downward pressure on canola prices. There were an estimated 7,266 canola contracts traded Wednesday, down from 13,539 during the previous session. Of the contracts traded, 1,990 were spread related. Western barley futures were little changed in non-existent trade. There was little in the way of fresh fundamentals to stimulate commercial interest in barley, brokers said. No barley contract changed hands during the session. On Tuesday 50 barley contracts were traded. |
