ICE Canada Review: Canola Follows Soybeans Up

By Dwayne Klassen, Commodity News Service Canada
August 20, 2012
WINNIPEG – Canola futures on the ICE  Canada trading platform ended Monday’s session with significant  advances with much of the strength associated with the rally  experienced by CBOT soybean and soyoil values, market watchers  said.
News that crop tour scouts in the US have found that soybean  yields will be much poorer than anticipated, also generated good  support for canola, brokers said.
A drop off in elevator company hedge selling, which had been  tied to sentiment that farmer deliveries of old crop canola and  new crop canola off the combine would increase, also helped to fuel  the upward price momentum.
The triggering of buy-stop orders on the way up amplified the  price gains, brokers said.
Additional support in canola came from light chart-based  speculative and commodity fund buying. The pricing of old export  business by commercials also encouraged some of the strength in  canola.
The upside in canola was restricted by the taking of profits  at the highs of the day. General firmness in the value of the  Canadian dollar against other foreign currencies, also capped some  of the upside price potential.
The quick development of canola crops across western Canada  amid favourable weather conditions and sentiment that the August  22 crop production survey from Statistics Canada will show record  sized canola output in Canada, further tempered the price gains,  traders said.
There were an estimated 11,007 canola contracts traded  Monday, up from the 5,184 contracts that changed hands during the  previous session.
There were no milling wheat contracts traded Monday but  values were raised by ICE Canada. No durum or barley contracts  traded.
Prices are in Canadian dollars per metric ton.
Price Change
Canola
Nov      621.40 up 13.30                  Jan     626.10   up 13.70                  Mar     627.70   up 13.40 Milling Wheat Oct     294.70   up  1.70                  Dec     300.30   up  1.70 Durum Oct     299.20     unch                  Dec     303.70     unch  Barley Oct     264.50     unch                  Dec     269.50     unch

Commodity futures

Futures Prices as of May 24, 2013

Canola Price Change
Nov621.4013.30
Jan626.1013.70
Mar627.7013.40
Milling Wheat Price Change
Oct294.701.70
Dec300.301.70
Durum Price Change
Oct299.20
Dec303.70
New Barley Price Change
Oct264.50
Dec269.50

Prices are in Canadian dollars per metric ton

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