ICE Canola Contracts Ease As C$ Strengthens
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 5, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at slightly easier price levels at midday. The continued uptrend in the value of the Canadian dollar was an undermining price influence on canola, market watchers said.
The Canadian currency at around 10:30 CDT was valued at 99.67 US cents or C$1.0033. The strength in the Canadian currency causes a decline in the profitability in crush margins for domestic processors and makes it more expensive for importers to purchase Canadian canola, traders said. The losses seen overnight in Malaysian palm oil futures also sparked some minor selling interest in canola. Adding to the bearish price sentiment in canola were expectations for a huge jump in the seeded area to the crop this spring in western Canada, brokers said. Elevator company hedge selling was also evident and contributed to the downward price slide, brokers said. News of another shipment of Canadian canola meal from ADM being rejected by the US Food and Drug Administration also contributed to the bearish atmosphere, brokers said. Underlying support in canola came from the advances experienced by CBOT soyoil contracts and by scale down commercial pricing of old export business to Japan, traders said. Activity in canola was described as light and choppy with many key market participants extending the Easter Holiday weekend. There were an estimated 1,329 canola contracts traded at 10:29 CDT. Of the contracts traded, 558 were spread related. There were no western barley futures traded as of 10:29 CDT. |
