ICE Canola Follows Outside Markets Lower
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| By Phil Franz-Warkentin, Resource News International |
| May 14, 2010 |
| Winnipeg – ICE Canada canola futures were lower Friday morning, pressured by losses in the outside markets, bearish technical signals, and the improving planting conditions across western Canada. However, the weaker Canadian dollar helped keep the losses in check.
General economic uncertainty, stemming from the ongoing problems in Greece and Europe, were at the forefront of the financial markets once again Friday morning. That uncertainty had investors backing away from commodities, and canola was caught up in that selling pressure, according to traders. CBOT soybeans were also being called lower to start the North American session. Forecasts calling for warm, dry weather conditions across western Canada into the next week added to the bearish tone in canola. The warmer weather will allow farmers to continue planting what is expected to be a record large canola crop. The losses were tempered by the weakness in the Canadian dollar, which was down sharply relative to its US counterpart early in the day. The weaker currency makes canola more attractive to exporters and domestic crushers. Reluctant farmer selling was also cited as a supportive price influence in canola. About 1,320 canola contracts had traded as of 8:13 CDT. Western barley futures were untraded and unchanged in overnight activity. Prices in Canadian dollars per metric ton at 8:13 CDT: |
| Price | Change | ||
| Canola | |||
| Jul | 377.00 | dn 1.50 | |
| Nov | 380.70 | dn 2.20 | |
| Jan | 387.50 | unch | |
| Western Barley | |||
| Jul | 145.50 | unch | |
| Oct | 145.50 | unch | |
