ICE Canola Contracts Strengthen As C$ Weakens
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 4, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly higher price levels at midday after starting on a weaker footing. Much of the upward price action was associated with the downswing in the value of the Canadian dollar, market watchers said.
Some of the early weakness displayed by canola reflected the losses seen overnight in Malaysian palm oil and European rapeseed futures, brokers said. Weakness in CBOT soybean and soyoil values also were an undermining price influence. Some of the early selling was also encouraged by the improved growing conditions across the Canadian prairies due to recent precipitation. Some elevator company hedge selling was also evident and helped to weigh on prices. The losses were offset by the weak Canadian dollar, which has stimulated fresh domestic processor demand, traders said. Commercial pricing, believed to be covering old export business to Japan, was also an underpinning price influence for canola, brokers said. Commodity funds were seen as both buyers and sellers of canola. There were an estimated 2,346 canola contracts traded at 10:34 CDT. Of the contracts traded, 876 were spread related. There were no western barley futures traded as of 10:34 CDT. |
