ICE Canola Weakens, Pressured By C$, Commodities
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| By Phil Franz-Warkentin, Resource News International |
| April 15, 2010 |
| Winnipeg – ICE canola futures were lower Thursday morning in quiet trade. Continued strength in the Canadian dollar and a weaker tone in outside commodity markets put some pressure on canola values, according to traders.
The Canadian dollar continued to trade above parity with its US counterpart Thursday morning, after climbing above the key level on Wednesday. The stronger Canadian dollar cuts into domestic crush margins and makes canola less attractive to export customers pricing in US dollars. The large South American soybean crop, overnight losses in Malaysian palm oil futures, expectations for increased North American oilseed acres, and improving weather conditions in western Canada also put some pressure on canola values, according to traders. However, there are still enough excessively dry areas in Alberta and Saskatchewan to keep a weather premium in the market. CBOT soybeans were narrowly mixed in overnight trade and the eventual direction they take at the start of the North American session could influence canola values. About 100 canola contracts had traded as of 8:35 CDT. Western barley futures were untraded and unchanged in overnight activity. Prices in Canadian dollars per metric ton at 8:35 CDT: |
| Price | Change | ||
| Canola | |||
| May | 379.10 | dn 0.70 | |
| Jul | 384.80 | dn 1.30 | |
| Nov | 386.20 | dn 3.00 | |
| Western Barley | |||
| May | 154.00 | unch | |
| Jul | 145.50 | unch | |
