ICE Canola Drops With Soybeans

By Phil Franz-Warkentin, Commodity News Service Canada
Oct. 15, 2012
Winnipeg – Canola contracts on the ICE Futures  Canada platform were weaker at 10:50 CDT Monday, as sharp declines  in the CBOT soy complex spilled over to weigh on values.
“It’s an ugly day,” said a canola broker, noting that small  speculators were behind much of the selling pressure as they reacted  to the losses in soybeans. Expectations for a large South American  soybean crop, chart-based liquidation, and ongoing US harvest  pressure were all cited as accounting for some of the weakness in  soybeans.
The move below psychological support at C$600 per tonne in the  November canola contract triggered some sell-stops, which  contributed to the losses in canola, according to participants.
However, canola was lagging soybeans to the downside, as  concerns over tightening supplies in western Canada provided some  support. A broker said farmers remained reluctant sellers, while  exporters and domestic crushers were being forced to pay up in order  to secure supplies.
At 10:50 CDT, about 7,000 canola contracts had changed hands.  Intermonth spreading was a feature, as participants continue to roll  out of the nearby November contract.
Milling wheat, durum, and barley futures were all untraded and  unchanged.
Prices in Canadian dollars per metric ton at 10:50 CDT:Price      Change

Canola            Nov     597.00    dn  9.80

Jan     595.90    dn  9.70

Mar     592.50    dn 10.30

Milling Wheat     Dec     297.40      unch

Mar     306.90      unch

Durum             Dec     312.40      unch

Mar     319.00      unch

Barley            Dec     250.00      unch

Mar     253.00      unch

 

Commodity futures

Futures Prices as of May 23, 2013

Canola Price Change
November597.009.80
January595.909.70
March592.5010.30
Milling Wheat Price Change
December297.40
March306.90
Durum Price Change
December312.40
March319.00
New Barley Price Change
December250.00
March253.00

Prices are in Canadian dollars per metric ton

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