ICE Canada Review: Canola Climbs With Soybeans

By Phil Franz-Warkentin, Commodity News Service Canada
July 30, 2012
Winnipeg – ICE Futures Canada canola contracts  closed higher on Monday, as sharp gains in the CBOT soy complex spilled  over to provide support. The US Midwest remains stuck in the middle of its most severe  drought in decades, and the continued hot, dry forecasts had traders  adding to the weather premiums in CBOT soybeans on Monday, according  to market participants.Advances in outside oilseed markets, including Malaysian palm  oil and European rapeseed futures contributed to the resulting  spillover buying interest in canola. Speculators were some of the  noted buyers, with some buy-stops hit on the way up.

However, a lack of fresh export demand limited the advances in  canola, said a broker.

Generally good conditions for the development of canola in  western Canada, and start of early harvest operations in Manitoba also  tempered the gains. Increased farmer selling and ideas canola was  looking overpriced compared to other oilseeds slowed the advances as  well, said traders.

From a technical standpoint, canola was said to be consolidating  after last week’s declines. Support for the most active November  contract was seen at C$600 per tonne, with resistance at C$630.

About 12,500 canola contracts were traded on Monday, which  compares with Friday when 9,761 contracts changed hands. Milling wheat, durum, and barley futures were all untraded and  unchanged.

Price      Change

Canola            Nov     623.60    up 15.70

Jan     626.30    up 16.10

Mar     627.50    up 15.50

Milling Wheat     Oct     327.50    unch

Dec     335.00    unch

Durum             Oct     330.40    unch

Dec     334.90    unch

Barley            Oct     264.50    unch

Dec     269.50    unch

Commodity futures

Futures Prices as of May 23, 2013

Canola Price Change
November623.6015.70
January626.3016.10
March627.5015.50
Milling Wheat Price Change
October327.50
December335.00
Durum Price Change
October330.40
December334.90
New Barley Price Change
October264.50
December269.50

Prices are in Canadian dollars per metric ton

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