ICE Canola Contracts Mixed, Old Crop Down On Strong C$
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 14, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading in a mixed range with the three nearby months down at midday and the remainder at steady to higher levels. The declines in the nearby contracts were influenced by the upward swing in the value of the Canadian dollar against the US currency, market watchers said.
The Canadian unit was trading above parity with the US dollar, representing a 22 month high. The appreciation of the Canadian dollar was said to have caused a temporary reduction in demand from the domestic processing sector and caused exporters to back away from the market, brokers said. Steady hedge selling by grain companies contributed to the weakness in canola, traders said. Large global oilseed supplies and the record acreage forecasts for canola in western Canada and soybeans in the US added to the bearish price atmosphere. "There has been good volumes of trade in featureless activity," a broker said. Spread activity with fund accounts rolling out of the nearby May and into the July or November contracts, was linked to the good volume total. The downside in canola was limited by scale down commercial demand and uncertainty surrounding growing conditions for crops in western Canada, brokers said. There were an estimated 11,557 canola contracts traded at 10:37 CDT. Of the contracts traded, 11,120 were spread related. There were no western barley futures traded as of 10:37 CDT. |
