ICE Canola Moves Lower, As C$ Weighs
| 1 min read
|
|
| By Phil Franz-Warkentin, Resource News International |
| April 14, 2010 |
| Winnipeg – ICE canola futures were steady to lower Wednesday morning in thin trade. The stronger tone in the Canadian dollar, which was trading above parity with its US counterpart, accounted for some of the weakness in canola. However, advances in other commodity and equity markets helped limit the downside.
The stronger Canadian dollar cuts into domestic crush margins and makes canola less attractive to export customers pricing in US dollars. Canola was also pressured by the improving crop prospects in western Canada following some recent precipitation, and the expectations for an increase in acres, according to an analyst. Although he added that there is still a lot of uncertainty with regards to the weather, and many areas will need more moisture. Malaysian palm oil futures were slightly lower in overnight trade. However, calls for a higher start in the CBOT soy complex, along with gains in other markets including crude oil, provided some support for canola, limiting the declines. Scale-down end user demand was also helping keep temper the downside in canola, according to traders. Only 70 canola contracts had traded as of 8:56 CDT, with inter-month spreading the feature. Western barley futures were untraded and unchanged in overnight activity. Prices in Canadian dollars per metric ton at 8:56 CDT: |
| Price | Change | ||
| Canola | |||
| May | 381.80 | unch | |
| Jul | 386.20 | dn 1.70 | |
| Nov | 388.40 | dn 1.70 | |
| Western Barley | |||
| May | 154.00 | unch | |
| Jul | 145.50 | unch | |
