ICE Canada Review: Canola Corrects Higher

By Phil Franz-Warkentin, Commodity News Service Canada
Sept. 28, 2012
Winnipeg – ICE Futures Canada canola contracts  closed higher on Friday, seeing a corrective bounce to end the week  after posting large declines recently.
Gains in CBOT soybeans accounted for some of the spillover  strength in canola, according to participants. While the USDA  quarterly stocks report released this morning was bearish for  soybeans, the numbers were surprisingly bullish for corn and wheat.  The resulting rally in the grains spilled into the oilseeds, including  canola.
Ongoing concerns that Canada’s canola crop may not be large  enough to meet demand this year were also supportive for canola, as  exporters and domestic crushers were showing solid demand, said  traders.
A lack of significant farmer selling and the softer Canadian  dollar provided further support for the canola market.
While canola was overdue for a corrective bounce after recent  declines, the overall technical bias is still pointing lower, said  an analyst. As a result, the attempt to take prices higher was also  seen as a selling opportunity from a chart perspective. The November  contract was unable to hold above the psychological C$600 per tonne  level on Friday, which should keep that chart point as a key resistance  level going forward.
About 24,448 canola contracts were traded on Friday, which  compares with Thursday when 21,622 contracts changed hands. Spreading  accounted for about 16,636 of the contracts traded.
Milling wheat futures were untraded, but revised lower after the  close. Durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price      Change

Canola            Nov     597.70    up 5.80

Jan     601.80    up 6.20

Mar     601.40    up 5.80

Milling Wheat     Oct     300.50    up 9.80

Dec     305.70    up 9.80

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 17, 2013

Canola Price Change
November597.705.80
January601.806.20
March601.405.80
Milling Wheat Price Change
October300.509.80
December305.709.80
Durum Price Change
October311.90
December316.40
New Barley Price Change
October250.30
December255.30

Prices are in Canadian dollars per metric ton

Respond





You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

COPA MedallionAGCanada.com was a 2012 COPA Finalist.
©2013 AGCanada is a production of FBC Limited Partnership a division of Glacier Media Inc.
Please refer to Copyright Page for details.