ICE Canola Corrects Lower In Range-Bound Trade
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| By Phil Franz-Warkentin, Resource News International |
| April 8, 2010 |
| Winnipeg – ICE Canada canola futures were lower Thursday morning in thin range-bound trade, seeing a slight correction following Wednesday’s gains. Losses in other commodity and equity markets were putting some pressure on values, while the weaker Canadian dollar limited the declines.
CBOT soybeans were being called slightly lower to start the North American session, which was leading to some spillover selling in canola, according to traders. The large South American soybean crop, together with expectations for increased US soybean and Canadian canola acres, also weighed on canola prices. The losses in canola were being tempered by the Canadian dollar, which was weaker Thursday morning. The currency had traded at parity with its US counterpart earlier this week, causing some end users to back away from the market. Ongoing concerns about dry conditions in parts of Alberta and Saskatchewan also provided some underlying support for canola. However, traders also pointed out that conditions are generally favourable in many other areas, which should help the canola get off to an early start. Malaysian palm oil futures were higher in overnight activity, providing some underlying support for canola. About 500 canola contracts had traded as of 8:45 CDT. Western barley futures were untraded and unchanged in overnight activity. Prices in Canadian dollars per metric ton at 8:45 CDT: |
| Price | Change | ||
| Canola | |||
| May | 381.60 | dn 1.00 | |
| Jul | 387.30 | dn 1.20 | |
| Nov | 391.80 | dn 0.20 | |
| Western Barley | |||
| May | 154.00 | unch | |
| Jul | 145.50 | unch | |
