ICE Canola closes Lower, Strong C$ Undermines Values

By Dwayne Klassen, Commodity News Service Canada

Winnipeg – December 12/12 – Canola futures on the ICE Canada trading platform finished Wednesday’s session on the defensive with the continued upswing in the value of the Canadian dollar and the sell-off in outside oilseed markets behind much of the downward slide in values, industry watchers said.

Fairly good volumes of trade was seen in canola during the day with inter-month spreading helping to augment the volume total.

Some of the early selling seen in canola was associated with the losses in Malaysian palm oil and the declines seen in European rapeseed futures, brokers said. The declines experienced by CBOT soybean and soyoil values helped to weigh on canola futures.

Some light speculative liquidation, tied to bearish chart signals further undermined canola values.

Some minor elevator company hedge selling earlier in the session also added to the bearish sentiment in the commodity, traders said. They noted that farmer deliveries of canola into the cash pipeline has been slow, but these canola supplies were tied to the clearing out of some stockpiles by line companies.

The declines in canola were tempered imn part by steady commercial demand. Much of that buying interest was said to be covering old export commitments as well as some domestic crusher requirements, brokers said.

Concerns about tight canola supplies in Canada also restricted some of the downward price action.

There were an estimated 15,566 canola contracts traded Wednesday, up from the 11,462 contracts that changed hands during the previous session. Of the contracts that changed hands, 10,084 were spread related.

No Milling wheat, durum wheat 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
Milling Wheat Price Change
Durum Price Change
New Barley Price Change

Prices are in Canadian dollars per metric ton

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