ICE Canola Closes Lower On Fund Liquidation

 By Dwayne Klassen, Commodity News Service Canada

Winnipeg – December 31/12 – Canola futures on the ICE Canada
trading platform finished on the defensive Monday with end of year
liquidation by a variety of participants and the unloading of
positions by commodity fund accounts given the uncertain financial
situation facing the US Government generating the losses, market
watchers said.
Sentiment that the gains experienced on Friday were overdone and
that values were due for a correction to the downside, also added to
the bearish price sentiment, traders said.
Some early selling in canola was encouraged by the losses posted
overnight in Malaysian palm oil and European rapeseed values. The
declines experienced by CBOT soybean futures further weighed on
canola.
General firmness in the Canadian dollar was an undermining price
influence on canola as was the favourable weather for the development
of record sized soybean crops in Brazil and Argentina, brokers said.
The downswing in canola was restricted by scale down buying by
commercial accounts. Much of that interest was said to be pricing old
export business to Japan as well as covering minor domestic crusher
needs.
Relatively slow farmer deliveries of canola into the cash
pipeline in western Canada also provided some underlying support. A
late day upturn in CBOT soyoil futures also erased some of the price
weakness in canola.
There were an estimated 10,518 canola contracts traded Monday,
down from the 20,601 contracts that changed hands during the previous
session. Of the contracts that changed hands, 6,176 were spread
related.
No milling wheat, durum or barley contracts were traded.
Prices are in Canadian dollars per metric ton.

Commodity futures

Futures Prices as of April 24, 2014

Canola Price Change
January601.603.40
March589.906.70
May584.307.20
Milling Wheat Price Change
March290.50
May293.50
Durum Price Change
March312.40
May316.40
New Barley Price Change
March247.00
May248.00

Prices are in Canadian dollars per metric ton

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