ICE Canada Review: Canola Edges Up As Supplies Tighten

By Phil Franz-Warkentin, Commodity News Service Canada
Sept. 7, 2012
Winnipeg – ICE Futures Canada canola contracts  closed with small gains on Friday, as tightening supplies and concerns  over the size of this year’s crop provided support.
Statistics Canada released its ending stocks numbers for the  recently completed 2011/12 (Aug/Jul) crop year this morning, pegging  canola supplies as of July 31 at the relatively tight level of only  788,000 tonnes. With ending stocks more than a million tonnes smaller  than the revised supplies left over from the previous year, traders  said the tight stocks highlighted the need for a large harvest in 2012.
However, given the yield reports coming in from the harvest so  far, total canola production in the country is unlikely to live up  to earlier expectations, said participants. As a result, end users  were being forced to pay up to secure supplies. Commercials were some  of the noted buyers in the day’s activity.
Outside oilseed markets, including Malaysian palm oil, European  rapeseed and CBOT soybeans all experienced losses, which served to  limit the gains in canola, said traders.
The continued strength in the Canadian dollar, which moved  further above parity with its US counterpart, also weighed on canola  values.
About 13,064 canola contracts were traded on Friday, which  compares with Thursday when 11,285 contracts changed hands. Milling wheat futures were higher in thin commercial trade, as  gains in the US wheat markets spilled over to provide support. Durum and barley futures were both untraded, although the two  commodities saw revisions after the close.
Settlement prices are in Canadian dollars per metric ton.Price      Change

Canola            Nov     640.60    up 0.60

Jan     644.50    up 0.70

Mar     645.50    up 0.60

Milling Wheat     Oct     298.20    up 4.20

Dec     305.70    up 4.20

Durum             Oct     306.90    up 1.50

Dec     311.40    up 1.50

Barley            Oct     260.00    dn 4.50

Dec     265.00    dn 4.50

Commodity futures

Futures Prices as of May 24, 2013

Canola Price Change
November640.600.60
January644.500.70
March645.500.60
Milling Wheat Price Change
October298.204.20
December305.704.20
Durum Price Change
October306.901.50
December311.401.50
New Barley Price Change
October260.004.50
December265.004.50

Prices are in Canadian dollars per metric ton

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