Canadian canola futures were weaker on Wednesday in sympathy with weak US soyabean futures and the strong Canadian dollar, which curbed all but routine exporter and crusher buying, traders said. "The dollar is really hurting export business," a trader said.
ICE canola ended $3.90 per tonne lower to 80 cents higher, with March up 80 cents at $689.90, May down $3.90 at $697.60, July down $3.90 at $708.70 and November down $3 at $691.40. Light hedges and light commission house long liquidation added to the pressure, traders said.
But there was a lack of follow-through selling, and volumes ground to a standstill by mid-morning, traders said. "I think people are in awe of the volatility in the wheat market," a trader said. "People are just doing what they have to do."
At the Chicago Board of Trade, March soyabean oil was up 0.70 US cent per pound at 64.30 US cents and May was up 0.69 US cent at 65.02 US cents. March soyabeans were down 7-3/4 US cents per bushel at US $14.59 and March soyabean oil was up 0.20 US cent per lb at 64.47 US cents.
In spread trade, 1,149 March/May traded from $10.60 to $12.30, 789 March/July from $10.40 to $11.20, and 649 July/November from $17.10 to $18.70, premium July. Total canola volume was estimated at 8,446 contracts, down from a total of 23,734 on Tuesday. In canola options, 1,100 May $700 calls traded at $26 and 100 May $750 calls at $10, both representing a volatility around 25 percent.
Barley futures were pressured by long liquidation ahead of first notice day for delivery against nearby futures on Friday, a trader said. March barley was down $9.10 per tonne at $217, May down $4 at $228 and October down $5 at $237.10.