ICE Canada Review: Canola Corrects Higher

By Phil Franz-Warkentin, Commodity News Service Canada
Oct. 3, 2012
Winnipeg – ICE Futures Canada canola contracts  closed higher on Wednesday, seeing a short-covering bounce as  speculators squared positions ahead of Thursday’s Statistics Canada  production report.
The advancing US soybean harvest and improving yield prospects  accounted for some early selling in soybeans that spilled into canola,  said a trader. Steady farmer deliveries were another bearish factor  overhanging the canola market.
However, canola lagged the soy complex to the downside, and  turned higher to post solid gains as speculative short-covering came  forward to provide support. The recent losses also pushed some farmer  selling to the sidelines while also encouraging fresh end user demand.
Positioning ahead of Thursday’s Statistics Canada production  report also helped lend some independent strength to the canola  market. The report is widely expected to show a smaller canola crop  than previously forecast in August, but the extent of the cut remains  to be seen.
About 27,139 canola contracts were traded on Wednesday, which  compares with Tuesday when 17,557 contracts changed hands. Spreading  accounted for about 20,654 of the contracts traded.
Milling wheat futures were untraded, but revised higher after  the close. Durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.

Commodity futures

Futures Prices as of May 17, 2013

Canola Price Change
November594.6012.00
January595.5010.00
March592.107.20
Milling Wheat Price Change
October294.300.70
December299.500.70
Durum Price Change
October309.30
December313.80
New Barley Price Change
October245.00
December250.00

Prices are in Canadian dollars per metric ton

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