ICE Canada Review: Canola Continues Lower

By Phil Franz-Warkentin, Commodity News Service Canada
Sept. 24, 2012
Winnipeg – ICE Futures Canada canola contracts were  weaker on Monday, seeing some follow-through selling on last week’s  declines. Losses in the CBOT soy complex spilled over to weigh on  values.
Speculators liquidating long positions were behind much of the  selling pressure in canola, according to traders. The advancing US  soybean harvest and improving South American crop prospects added to  the softer tone.
However, canola managed to settle well off its lows for the day  as ongoing concerns over the size of the Canadian crop provided  underlying support. Domestic crushers were noted buyers on a  scale-down basis amid worries that supplies may not be large enough  to meet the projected demand going forward.
A lack of significant farmer selling provided further support  for canola, as the production uncertainty in western Canada has many  farmers reluctant to make any additional sales, said a broker. A  weaker tone in the Canadian dollar also helped limit the losses in  canola.
About 11,562 canola contracts were traded on Monday, which  compares with Friday when 10,848 contracts changed hands. Spreading  accounted for about 2,278 of the contracts traded.
Milling wheat, durum, and barley futures all held steady on the  day. Wheat and barley were both untraded, while durum saw some very  light two-sided spread activity.
Settlement prices are in Canadian dollars per metric ton.Price      Change

Canola            Nov     611.40    dn 1.50

Jan     614.90    dn 1.30

Mar     614.30    dn 1.40

Milling Wheat     Oct     301.50    unch

Dec     306.70    unch

Durum             Oct     311.90    unch

Dec     316.40    unch

Barley            Oct     250.30    unch

Dec     255.30    unch

Commodity futures

Futures Prices as of May 21, 2013

Canola Price Change
November611.401.50
January614.901.30
March614.301.40
Milling Wheat Price Change
October301.50
December306.70
Durum Price Change
October311.90
December316.40
New Barley Price Change
October250.30
December255.30

Prices are in Canadian dollars per metric ton

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