ICE Canola Down On C$ Strength

Canola saw light activity with intermonth spreading augmenting the small trade.
As of 11:05 CDT, an estimated 4,606 contracts had changed hands.

Canola was pressured down by the firm tone in the Canadian dollar, said traders.
"The Canadian dollar is flirting with US$0.91 again and that is not good news for canola," said a trader.
Contributing to the weakness was the favorable crop weather forecast through the end of July.

Traders noted the weakness was not a function of aggressive selling but a lack of demand as the crop uncertainties continue to sideline buyers. "The flow is still just small buy and sell orders with nothing significant," said a broker.

Slow farmer selling gave the main support with expectations for overall tight canola supplies in 2009-10 also helping to underpin the market.

Routine exporter and crusher buying met mainly commercial and light speculative selling.

Western barley is untraded and unchanged. Commercial bids reside well under the market as expectations for ample supply prompted a bearish tone in the feed grains, brokers said.

Prices at 11:05 CDT in Canadian dollars per metric ton: