ICE Canola Contracts Weaken As C$ Firms, Soybeans Fall
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 3, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly lower price levels at midday with declines a reflection of the upswing in the value of the Canadian dollar and the weakness seen in CBOT soybean futures, market watchers said.
The firm Canadian dollar was limiting fresh export demand as well as causing a small pull-back in domestic crusher demand, traders said. Adding to the price weakness in canola were the losses seen in CBOT soybean and soyoil values. The improved soil moisture situation in western Canada was viewed as an undermining price influence on canola as well, traders said. Light, but steady levels of hedge selling also contributed to some of the bearish price sentiment in canola. The absence of follow through buying also was an undermining price influence. Early support came from the small advances seen in Malaysian palm oil and European rapeseed futures overnight, brokers said. Carry over buying from Friday’s higher close also generated some early support for canola. Spreading was a minor feature of the activity in canola. There were an estimated 2,047 canola contracts traded at 10:25 CDT. There were no western barley futures traded as of 10:25 CDT. |
