ICE Canada Review: Canola Drops With Beans

By Phil Franz-Warkentin, Commodity News Service Canada
Sept. 20, 2012
Winnipeg – ICE Futures Canada canola contracts were  weaker on Thursday, retesting recent lows as a sell-off in the CBOT  soy complex spilled over to weigh on prices.
After posting only small losses in subdued trade for most of the  day, a larger break lower in CBOT soybeans eventually spilled into  the Canadian market. Sell-stops were hit on the way down, exaggerating  the losses in canola as prices moved below nearby support, said  participants.
Renewed global economic uncertainty, spurred on in part by soft  manufacturing data out of China, accounted for some of the fund  liquidation in the grains and oilseeds, including canola, said  traders. The resulting selling pressure then built on itself as the  day progressed.
However, the declines helped uncover some fresh commercial  buying interest at the lows. Market participants are still concerned  that the Canadian canola crop won’t be large enough to meet the  projected demand this year, and crushers and exporters were said to  be making some purchases on a scale-down basis.
A lack of significant farmer selling and a softer tone in the  Canadian dollar also helped temper the declines in canola, said  traders.
About 20,135 canola contracts were traded on Thursday, which  compares with Wednesday when 10,045 contracts changed hands.  Spreading accounted for about 7,428 of the contracts traded.
Milling wheat futures were untraded, although prices were  revised higher after the close. Durum and barley were untraded and  unchanged.
Settlement prices are in Canadian dollars per metric ton.Price      Change

Canola            Nov     617.40    dn 17.20

Jan     620.70    dn 17.50

Mar     620.00    dn 18.30

Milling Wheat     Oct     295.50    up  1.50

Dec     301.30    up  1.50

Durum             Oct     310.10    unch

Dec     314.60    unch

Barley            Oct     250.30    unch

Dec     255.30    unch

Commodity futures

Futures Prices as of May 23, 2013

Canola Price Change
November617.4017.20
January620.7017.50
March620.0018.30
Milling Wheat Price Change
October295.501.50
December301.301.50
Durum Price Change
October310.10
December314.60
New Barley Price Change
October250.30
December255.30

Prices are in Canadian dollars per metric ton

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