ICE Canola Settles Lower, Strong C$ Bearish

By Dwayne Klassen, Commodity News Service Canada

Winnipeg – December 11/12 – Canola futures on the ICE Canada trading platform ended Tuesday’s session with declines. Losses were influenced by the weakness displayed by CBOT soybean and soyoil values and the strength seen in the Canadian dollar, market watchers said.

Activity was described as choppy with the USDA reports released earlier in the session causing a lot of uncertainty among participants, traders said.

Early losses in canola were influenced by the declines posted overnight by Malaysian palm oil futures. The downward price turn taken by CBOT soybeans after the release of the report sparked the selling that took canola futures down, brokers sxaid.

Chart-based liquidation orders from speculative and commodity fund accounts helped to undermine canola futures. Some light selling in canola was also spurred on by the USDA decision to leave soybean production in South America at record high levels.

A drop off in domestic crusher demand also sparked some of the price weakness in canola.

The sell-off in canola was restricted by steady demand from commercials, most of which was covering old export commitments. The continued reluctance of farmers to deliver canola to the country elevator system also slowed the price decline, traders said.

Continued concerns about the tight canola supply in Canada also tempered the price drop in canola.

There were an estimated 11,462 canola contracts traded Tuesday, up fractionally from the 11,382 contracts that changed hands during the previous session. Of the contracts that changed hands, 7,794 were spread related.

There were 30 milling wheat contracts traded during the day with most of that action tied to the rolling of spreads out of December and into the March future.

No durum wheat and barley contracts were traded.

Prices are in Canadian dollars per metric ton.

Commodity futures

Futures Prices as of April 17, 2014

Canola Price Change
January593.005.10
March589.805.40
May588.105.50
Milling Wheat Price Change
December270.7015.30
March290.508.00
Durum Price Change
December312.00
March316.00
New Barley Price Change
December245.00
March248.00

Prices are in Canadian dollars per metric ton

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