ICE Canada Review: Canola Ends Up With Soybeans

By Phil Franz-Warkentin, Commodity News Service Canada
August 3, 2012
Winnipeg – ICE Futures Canada canola contracts  closed higher on Friday, seeing a technical correction to end the week  as the market found some spillover support from the gains in the CBOT  soy complex.
Declining yield prospects and positive US economic data accounted for much of the strength in soybeans, and some of that buying  interest spilled into the canola market as well, said traders.
In addition to the hot, dry US weather conditions underpinning  the oilseed markets in general, uncertainty over the size of the  Canadian canola crop was also said to be supportive. Disease and  weather stress could limit the yield potential in some areas, helping  keep some weather premiums in the Canadian futures.
However, the stronger Canadian dollar, which moved above parity  with its US counterpart, did temper the advances in canola, said  participants. Mounting harvest pressure also kept the market  relatively range-bound.
About 5,837 canola contracts were traded on Friday, which  compares with Thursday when 8,359 contracts changed hands. The light  volumes led to some choppiness as participants moved to the sidelines  ahead of the long weekend. Canadian markets will be closed August 6  for a civic holiday.
Milling wheat was higher, following the US futures, although  only two contracts actually changed hands. Durum and barley futures  were both untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price      Change

Canola            Nov     619.00    up 5.80

Jan     620.60    up 5.60

Mar     619.10    up 3.40

Milling Wheat     Oct     301.00    up 3.50

Dec     308.00    up 3.00

Durum             Oct     311.50    unch

Dec     316.00    unch

Barley            Oct     264.50    unch

Dec     269.50    unch

Commodity futures

Futures Prices as of May 24, 2013

Canola Price Change
November619.005.80
January620.605.60
March619.103.40
Milling Wheat Price Change
October301.003.50
December308.003.00
Durum Price Change
October311.50
December316.00
New Barley Price Change
October264.50
December269.50

Prices are in Canadian dollars per metric ton

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