ICE Canada Review: Canola Closes Lower, Following Soybeans

By Phil Franz-Warkentin, Commodity News Service Canada
Oct. 1, 2012
Winnipeg – ICE Futures Canada canola contracts  closed lower on Monday, as sharp declines in the CBOT soy complex  spilled over to weigh on values.
Bearish technical signals added to the weaker tone in canola,  as the nearby November contract tried and failed to retest the C$600  per tonne level. That key chart point now represents solid upside  resistance for canola, according to analysts.
Holidays in China this week put further downward pressure on the  oilseeds, given the lack of fresh buying interest from the country.  Increased farmer selling in western Canada was another bearish factor  for canola, according to a broker.
However, scale down domestic crusher buying interest did provide  some underlying support, as the processors continue to operate at a  solid pace. Uncertainty over the size of the Canadian canola crop,  ahead of Thursday’s Statistics Canada production report, was also  somewhat supportive.
About 18,091 canola contracts were traded on Monday, which  compares with Friday when 24,448 contracts changed hands. Spreading  accounted for about 11,662 of the contracts traded.
Milling wheat and barley futures were untraded, but revised  lower after the close. Durum was untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price      Change

Canola            Nov     589.90    dn  7.90

Jan     593.00    dn  8.80

Mar     591.40    dn 10.00

Milling Wheat     Oct     297.70    dn  2.80

Dec     302.90    dn  2.80

Durum             Oct     311.90    unch

Dec     316.40    unch

Barley            Oct     249.50    dn  0.80

Dec     254.50    dn  0.80

Commodity futures

Futures Prices as of May 22, 2013

Canola Price Change
November589.907.90
January593.008.80
March591.4010.00
Milling Wheat Price Change
October297.702.80
December302.902.80
Durum Price Change
October311.90
December316.40
New Barley Price Change
October249.500.80
December254.500.80

Prices are in Canadian dollars per metric ton

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