ICE Canada Review: Weak Cdn Dollar Underpins Canola
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 25, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform finished mixed with most of the nearby months up and the remainder of the contracts down. Strength throughout the day came from the downswing in the value of the Canadian dollar while the sell-off in the CBOT soybean complex kept some contracts on the defensive, market watchers said.
The continued debt crisis concerns in the euro-zone also prompted some of the selling seen in canola during the day. Canola found good support from the drop in value of the Canadian dollar as the weakness encouraged good demand from domestic processors and maintained the covering of old export business to Japan by commercial accounts, traders said. The buying back of previously sold positions offered some minor support to canola as did concerns that overly wet conditions in parts of the Canadian prairies will prevent the timely planting of the canola crop, brokers said. The advances in canola were also restricted by the sell-off seen in CBOT soybeans and soyoil and by the losses seen overnight in Malaysian palm oil futures. Scale up hedge selling by grain companies also limited the upward price action seen in canola. The rolling out of positions in the nearby July future and into the November contract was a feature of the activity seen in canola during the day. There were an estimated 16,219 canola contracts traded Tuesday, up from 11,324 during the previous session. Of the contracts traded, 9,120 consisted of spreads. Western barley futures were untraded and unchanged Tuesday. No barley contracts changed hands during the session. On Friday, no barley contracts were traded. |
