ICE Canada Review: Canola Corrects Higher With Short-Covering

By Phil Franz-Warkentin, Commodity News Service Canada
Nov. 6, 2012
Winnipeg – ICE Futures Canada canola contracts  closed higher on Tuesday, seeing a bit of a short-covering bounce  after recent declines. Gains in CBOT soybeans and ideas the losses  in canola were overdone from a technical standpoint accounted for most  of the strength, according to participants.
Concerns that Canadian canola supplies will be very tight before  the end of the current crop year were also supportive, leading to some  bargain-hunting from end users, said traders. However, a broker  cautioned that canola may not have much room to the upside, despite  the tightening supplies, but may just decline to a lesser extent than  other oilseeds going forward.
The nearby technical bias has also shifted to the downside in  canola, which limited the short-covering correction. Improving crop  prospects in South America and expectations for an upward revision  to the size of the US soybean crop in Friday’s USDA supply/demand  report also weighed on values.
About 9,920 canola contracts were traded on Tuesday, which  compares with Monday when 16,309 contracts changed hands. Spreading  accounted for about 3,600 of the contracts traded.
Milling wheat and durum were untraded and unchanged. Barley did  see some light commercial activity, but settled with no change in  price.
Settlement prices are in Canadian dollars per metric ton.Price      Change

Canola            Jan     600.50    up 10.70

Mar     597.30    up 11.30

May     592.50    up 14.00

Milling Wheat     Dec     308.50    unch

Mar     318.00    unch

Durum             Dec     312.40    unch

Mar     319.00    unch

Barley            Dec     250.00    unch

Mar     253.00    unch

 

Commodity futures

Futures Prices as of April 23, 2014

Canola Price Change
January600.5010.70
March597.3011.30
May592.5014.00
Milling Wheat Price Change
December308.50
March318.00
Durum Price Change
December312.40
March319.00
New Barley Price Change
December250.00
March253.00

Prices are in Canadian dollars per metric ton

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