ICE Canola Edges Higher, But C$ Weighs
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| By Phil Franz-Warkentin, Resource News International |
| March 17, 2010 |
| Winnipeg – ICE Canada canola futures were mostly higher Wednesday morning, seeing some follow-through buying on Tuesday’s firmer close. However, the trade was subdued with the strong Canadian dollar limiting the upside.
Oversold price sentiment and an increase in exporter pricing supported canola prices on Tuesday, and traders said that buying interest was still present in the overnight trade. Calls for a higher start in the CBOT soy complex, gains in the outside markets, and overnight advances in Malaysian palm oil and European rapeseed, should all provide some underlying support for canola. However, activity in the canola market was subdued in early trade. The Canadian dollar hit 99 US cents on Wednesday and is generally expected to move above parity with its US counterpart sometime soon. The strong Canadian dollar was expected to temper any gains in canola. The large South American soybean crop and expectations for an increase in North American oilseed acres also weighed on canola values, according tot traders. About 400 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 | 378.90 | up 1.60 | |
| Jul | 384.00 | up 1.40 | |
| Nov | 385.60 | up 0.50 | |
| Western Barley | |||
| May | 154.00 | unch | |
| Jul | 154.00 | unch | |
