ICE Canola Contracts Weaken On Strong C$
| 1 min read
| By Dwayne Klassen, Resource News International |
| April 1, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at midday. Weakness in canola was associated with the ongoing move of the Canadian currency towards parity with the US dollar, market watchers said.
The evening up of positions ahead of the long holiday weekend was a feature of the activity in canola. The ICE Canada trading platform will be closed for the Good Friday Holiday on April 2. Losses overnight in Malaysian palm oil futures helped to weigh on canola values with the downturn in CBOT soybean values shortly after the opening also an undermining price influence, brokers said. Steady levels of hedge offers from grain companies helped to generate the declines, traders said. End-of-month liquidation by a variety of market participants also contributed to the downward price slide seen by canola. The large global oilseed supply situation was seen as bearish for prices with the potential for a significant increase in seeded area to canola this spring in western Canada also weighing on prices. Some minor support in canola was coming from steady commercial demand at the lows, most of which was believed to be pricing old export business, trade rs said. The buying back of previously sold positions was also evident and helped to restrict the price losses. There were an estimated 3,705 canola contracts traded at 10:35 CDT. Of the contracts traded, 1,356 were spread related. There were no western barley futures traded as of 10:35 CDT. |
