ICE Canola Contracts Down as End-Users Wait
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 15, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels at midday with the lack of willing buyers tied to the strength of the Canadian dollar behind the downward price slide, market watchers said.
The upswing in the value of the Canadian dollar has caused domestic processors and exporters to take to the sidelines, brokers said. "There is some buying, but that interest is extremely unaggressive in nature," a trader said. Adding to the early weakness in canola were the losses seen overnight in Malaysian palm oil futures. Declines in CBOT soyoil futures were also an undermining price influence. The losses in canola were also said to be reflecting the relief of extremely dry growing conditions in Western Canada heading into spring seeding, brokers said. Steady elevator company hedge selling was also adding to the bearish price atmosphere in canola. "Elevator companies and domestic processors are having no trouble in obtaining canola at this point in order to meet commitments on the books," a broker said. "Just a short while ago, premiums had to be offered in order to get producers to sell." Some position evening ahead of the first acreage outlook for Canada by Statistics Canada on April 26 was also evident, brokers said. Market participants were said to be very interested o see if canola area in western Canada will be as large or larger than what is already being speculated in the industry, traders said. There were an estimated 6,857 canola contracts traded at 10:31 CDT. Of the contracts traded, 5,368 were spread related. There were no western barley futures traded as of 10:31 CDT. |
