ICE Canola Mixed As C$ Tempers Corrective Bounce
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| By Phil Franz-Warkentin, Resource News International |
| March 12, 2010 |
| Winnipeg – ICE Canada canola futures were narrowly mixed Friday morning, with conflicting outside influences keeping prices in a tight range, said traders.
After canola followed CBOT soybeans lower on Thursday, both markets were due for a corrective bounce higher on Friday, said traders. However, the sharp gains in the Canadian dollar were expected to limit the upside potential in canola and cause the market to lag soybeans to the upside. Better-than-expected domestic jobs data helped the Canadian dollar climb over 98 US cents on Friday, with many analysts now predicting an eventual run to parity with the US currency. A stronger Canadian dollar cuts into crush margins and makes Canadian canola less attractive to export customers. The large South American soybean crop also continues to overhang the market, as do the expectations for increased North American soybean and canola acres this spring. On the other side, steady exporter and domestic crusher demand provided underlying support for canola. A trader noted that canola is thought to be cheap compared to other oilseeds. About 190 canola contracts had traded as of 8:47 CST. Western barley futures were untraded and unchanged in overnight activity. Prices in Canadian dollars per metric ton at 8:47 CST: |
| Price | Change | ||
| Canola | |||
| May | 383.10 | up 0.50 | |
| Jul | 388.10 | dn 0.10 | |
| Nov | 393.00 | up 1.20 | |
| Western Barley | |||
| May | 154.00 | unch | |
| Jul | 154.00 | unch | |
