ICE Canada Review: Canola Jumps Higher At Close

By Phil Franz-Warkentin, Commodity News Service Canada
July 31, 2012
Winnipeg – ICE Futures Canada canola contracts  traded to both sides of unchanged in choppy activity for most of the  day on Tuesday, before speculative action in the final minutes boosted  prices sharply higher at the close.
Commercials and speculators were both noted buyers in canola,  while a lack of significant farmer selling forced end-users to pay  up, said participants. The relatively thin volumes in the market were  said to have exaggerated the eventual move higher. With little fresh news of its own to provide direction, canola  was largely a follower of the equally choppy US soybean market for  most of the day.
Advances in the CBOT soybean complex earlier in the session,  fueled by drought conditions in the US Midwest, were responsible for  some of the upward price action seen in canola, said participants.  However, soybeans turned lower by the close and canola managed to show  some independent strength.
Generally good conditions for the Canadian canola crop and  expectations for record production did temper the advances in the  market, said traders. The recent strength in the Canadian dollar and  technical resistance to the upside also limited the gains.
About 15,255 canola contracts were traded on Tuesday, which  compares with Monday when 12,500 contracts changed hands. Milling wheat, durum, and barley futures were all untraded,  although wheat and durum were both revised lower after the close.
Settlement prices are in Canadian dollars per metric ton.Price      Change

Canola            Nov     631.30    up  7.70

Jan     633.50    up  7.20

Mar     635.00    up  7.50

Milling Wheat     Oct     317.50    dn 10.00

Dec     325.00    dn 10.00

Durum             Oct     325.50    dn  4.90

Dec     330.00    dn  4.90

Barley            Oct     264.50    unch

Dec     269.50    unch

Commodity futures

Futures Prices as of May 24, 2013

Canola Price Change
November631.307.70
January633.507.20
March635.007.50
Milling Wheat Price Change
October317.5010.00
December325.0010.00
Durum Price Change
October325.504.90
December330.004.90
New Barley Price Change
October264.50
December269.50

Prices are in Canadian dollars per metric ton

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