ICE Canola Contracts Climb As CBOT Soybeans Rally
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 6, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels at midday. A rally in CBOT soybeans and soyoil encouraged the upward price momentum in canola, market watchers said.
The move by the Canadian dollar to match the value of the US dollar Tuesday morning helped to limit the advances seen by canola. The Canadian currency was trading at a level slightly above parity with the US dollar. The last time the Canadian dollar was valued at a higher level than the US currency was in July of 2008. The strong Canadian dollar makes it more expensive to purchase Canadian canola and also reduces the profitability of domestic processors, brokers said. The buying back of previously sold positions by a variety of market participants helped to generate some of the price gains experienced by canola. A slow down in the level of farmer selling contributed some support, traders said. Routine pricing of export business to Japan was also an underpinning influence for canola. Dryness concerns in parts of Alberta and Saskatchewan were also providing a firm floor for canola contracts, brokers said. The large global oilseed supply situation helped to temper the upside in canola as did continued talk of extremely large canola acreage this spring in western Canada, brokers said. A good portion of the volume total reflected a wide variety of market players readjusting canola positions via spreads, brokers said. There were an estimated 7,431 canola contracts traded at 10:49 CDT. Of the contracts traded, 4,386 were spread related. There were no western barley futures traded as of 10:49 CDT. |
