ICE Canola Lower Thanks to Strong Canadian Dollar
| 1 min read
By Brent Harder
| By Brent Harder, Commodity News Service Canada |
| June 14, 2011 |
| Winnipeg – June 14 – Canola contracts on the ICE Canada platform were lower at 08:30 CDT, with most of the bearish sentiment coming from the Canadian dollar, which was about a half a cent stronger against its US counterpart in early trade, analysts said.
Overnight losses in other oilseed markets, including Malaysian palmoil, European rapeseed, and the e-CBOT soy complex, added to the defensive tone of the market, brokers said. Further weakness came from a drop off in demand from both foreign and domestic purchasers, as did a pickup in elevator company hedge selling, market watchers said. Advances were tempered by the ongoing crop concerns in the eastern part of the Canadian prairies. It is estimated that as much as 10% of intended canola acres will not get planted, experts said. A lack of deliveries from producers into the cash pipeline was another supportive feature of the trade, market watchers said. At 08:30 CDT, there had been about 2,100 canola contracts traded, which compares to 107 at the same time on Monday. Western barley futures were unchanged and untraded early Tuesday. Prices in Canadian dollars per metric ton at 8:30 CDT: |
| Price | Change | ||
| Canola | |||
| Jul | 585.60 | dn 3.40 | |
| Nov | 588.20 | dn 3.60 | |
| Jan | 595.20 | dn 3.20 | |
| Western Barley | |||
| Jul | 205.00 | unchanged | |
| Oct | 205.00 | unchanged | |
