ICE Canada Review: Canola Down With Spec Selling

By Phil Franz-Warkentin, Commodity News Service Canada
Sept. 25, 2012
Winnipeg – ICE Futures Canada canola contracts were  weaker on Tuesday, as losses in CBOT soyoil and bearish chart signals  kept the path of least resistance to the downside.
Recent price action in canola was seen as bearish from a  technical standpoint, which made any attempts at moving prices higher  a good selling opportunity, according to market participants.  Speculators liquidating long positions were behind some of that  activity.
Losses in CBOT soyoil and the relatively stable Canadian dollar  also weighed on canola, as the crush margins continue to deteriorate  for domestic processors.
Gains in CBOT soybeans and other international oilseed markets  did provide some underlying support for canola, according to  participants. Ongoing concerns over tightening Canadian canola  supplies, a lack of significant farmer selling, and the likelihood  that demand will need to be rationed going forward, also helped limit  the losses.
About 11,986 canola contracts were traded on Tuesday, which  compares with Monday when 11,562 contracts changed hands. Spreading  accounted for about 7,408 of the contracts traded, with participants  rolling out of the nearby November contract a feature of the spread  activity.
Milling wheat futures were untraded, but revised lower after the  close. Durum and barley were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price      Change

Canola            Nov     608.80    dn 2.60

Jan     612.10    dn 2.80

Mar     611.90    dn 2.40

Milling Wheat     Oct     298.60    dn 2.90

Dec     303.80    dn 2.90

Durum             Oct     311.90    unch

Dec     316.40    unch

Barley            Oct     250.30    unch

Dec     255.30    unch

Commodity futures

Futures Prices as of June 19, 2013

Canola Price Change
November608.802.60
January612.102.80
March611.902.40
Milling Wheat Price Change
October298.602.90
December303.802.90
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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