ICE Canada Review: Canola Corrects Sharply Lower

By Phil Franz-Warkentin, Commodity News Service Canada
Sept. 17, 2012
Winnipeg – ICE Futures Canada canola contracts were  sharply weaker on Monday, dropping in sympathy with the US soy complex  as speculators booked profits on recent gains.
After canola futures set new contract highs on Friday the market  was due for a correction, and chart-based long liquidation was a  feature of the day’s activity. Sell-stops were hit on the way down,  exaggerating the losses, according to participants.
The advancing North American harvest, together with improving  planting prospects for soybeans in South America, added to the weaker  tone.
However, there are still enough concerns over yield losses in  western Canada to provide some support, said traders.
A softer tone in the Canadian dollar, which backed away from its  recent highs, also helped temper the declines.
About 20,780 canola contracts were traded on Monday, which  compares with Friday when 18,511 contracts changed hands. Spreading  accounted for about 11,728 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded  during the session. However, wheat prices were revised lower after  the close, as bids and offers were both below market during the  session.
Settlement prices are in Canadian dollars per metric ton.Price      Change

Canola            Nov     621.60    dn 30.00

Jan     625.40    dn 29.70

Mar     626.50    dn 29.10

Milling Wheat     Oct     294.60    dn  9.90

Dec     300.40    dn  9.90

Durum             Oct     306.90    unch

Dec     311.40    unch

Barley            Oct     250.30    unch

Dec     255.30    unch

Commodity futures

Futures Prices as of May 24, 2013

Canola Price Change
November621.6030.00
January625.4029.70
March626.5029.10
Milling Wheat Price Change
October294.609.90
December300.409.90
Durum Price Change
October306.90
December311.40
New Barley Price Change
October250.30
December255.30

Prices are in Canadian dollars per metric ton

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