ICE Canola Futures Drop On Strong C$
| 1 min read
| By Dwayne Klassen, Resource News International |
| November 9, 2009 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at significantly lower price levels at 9:47 EST. Much of the selling that surfaced was attributed to the renewed strength in the Canadian dollar, market watchers said.
Fall out from the Group of 20 economic meeting on the weekend helped the Canadian unit strengthen early Monday making canola more expensive to purchase, brokers said. Good harvest progress in western Canada during the weekend helped to influence some of the downward price action as did continued uncertainty surrounding future Canadian canola exports to China after November 15, traders said. Sluggish demand from the domestic and export sectors was also helping to undermine canola prices. Some technically based liquidation orders contributed to the downward price slide seen in canola. The declines in canola were slowed by the gains seen in e- CBOT soybean values overnight and by the higher calls for CBOT soybean and soyoil futures with the start of the North American day session. Some position evening ahead of Tuesday’s supply/demand balance sheets from the USDA was evident. Canadian markets will also be closed on Wednesday in observance of Remembrance Day. As of 9:47 am EST, there were 3,419 canola contracts traded. As of 9:47 am EST, no western barley contracts had been traded. |
