ICE Canada March canola futures fell to a contract low on Monday, weighed down by a stronger Canadian dollar and weaker rapeseed futures, traders said. Hedge pressure from grain companies was also seen as farmer selling picked up over weekend, a trader said.
March touched a contract low of $373.50, the lowest front-month intraday price since the October 9 bottom of $372.10. Key March canola has ended lower in six of the last seven sessions, pressured in the past week by soft technicals and bearish fundamentals for influential US soy futures. Most US markets, including the Chicago Board of Trade, were closed for Martin Luther King holiday.
March canola was down $3.50 at $378.30 per tonne on a volume of 1,852 contracts at 8:18 am CST (1418 GMT). May was down $3.40 at $385.40 on volume of 536. Traders expect March to stay down $3 to $4. Funds in net short position were not expected to be active.
The Canadian dollar was trading at $1.0264 to the US currency, or 97.43 US cents, at 8:14 am CST (1414 GMT), up from Friday's close at $1.0294, or 97.14 US cents. European February rapeseed futures on the MATIF exchange were down 0.44 percent at 279.75 euros. Light crude oil futures, tied to canola through its use in fuel, were up 36 US cents early at US $78.36 per barrel.
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