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
Futures Prices as of May 23, 2013
Prices are in Canadian dollars per metric ton