December 22, 2009

ICE canola futures down as Canadian dollar strengthens

Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels due to the strong Canadian dollar, which discourages importers from buying the commodity.

Contributing to the declines in canola were the losses posted overnight in Malaysian palm oil futures. The favourable South American crop conditions were also stimulating some additional selling interest.

Activity was expected to be on the choppy side ahead of the Christmas and Boxing Day holidays. ICE Futures Canada will close at noon central time on Thursday, December 24. The Exchange will be closed on Friday, December 25 as well as on Monday, December 28.

The absence of fresh export demand helped to weaken canola values with some light hedging from elevator companies adding to the bearish price sentiment, brokers said.