ICE Canola Weakens On Firm Canadian Dollar
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| By Phil Franz-Warkentin, Resource News International |
| May 28, 2010 |
| Winnipeg – ICE Canada canola futures were lower Friday morning, pressured by the firmer tone in the Canadian dollar and calls for early declines in the CBOT soy complex.
After strengthening sharply on Thursday, the Canadian dollar continued to see some follow-through strength on Friday, which weighed on canola values. The stronger currency cuts into domestic crush margins and also makes Canadian canola less attractive to export customers pricing in US dollars. Expectations for large North American oilseed supplies also remained bearish for canola, according to traders. However, excessive moisture in parts of western Canada was causing seeding delays in some areas and potentially causing flood damage in already emerged fields. While the wetness was providing some support for prices, there were also ideas that further delays to seeding would cause some producers to switch away from other crops and into canola. Trade could turn choppy in canola as participants square their positions ahead of the weekend. While Canadian markets will be open on Monday, the US markets will be closed for Memorial Day. About 730 canola contracts had traded as of 8:33 CDT. Western barley futures were untraded and unchanged in overnight activity. Prices in Canadian dollars per metric ton at 8:33 CDT: |
| Price | Change | ||
| Canola | |||
| Jul | 375.30 | dn 0.40 | |
| Nov | 381.40 | dn 0.20 | |
| Jan | 385.10 | dn 1.20 | |
| Western Barley | |||
| Jul | 147.50 | unch | |
| Oct | 145.50 | unch | |
