ICE Canola Contracts Mostly Higher On Weak C$
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 6, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly higher price levels at midday with the continued down trend in the value of the Canadian dollar generating much of the support, market watchers said.
The weakness in the Canadian unit was encouraging fresh domestic processor demand and helping to stimulate the pricing of old export business to Japan by commercials, brokers said. Strength in the nearby CBOT soybean contracts helped to influence some support for canola as did the buying back of previously sold positions by commodity fund accounts. Sentiment that the continued precipitation in western Canada could delay seeding progress also fueled some minor buying in the commodity, analysts said. The realigning of spreads by a variety of market participants was also helping to underpin nearby contracts while weighing on some of the deferred values, brokers said. Weakness in canola was associated with the improved growing conditions in western Canada and the large acreage base to soybeans in the US. Light, but steady levels of elevator company hedge selling also restricted some of the price gains seen in canola. Declines in CBOT soyoil futures were also an undermining price influence on canola. There were an estimated 7,212 canola contracts traded at 10:45 CDT. Of the contracts traded, 5,590 were spread related. There were no western barley futures traded as of 10:45 CDT. |
