ICE Canada Review: Canola Up With Spec, Commercial Buying

By Phil Franz-Warkentin, Commodity News Service Canada
Oct. 18, 2012
Winnipeg – ICE Futures Canada canola contracts  closed higher on Thursday, seeing a recovery from Wednesday’s  declines as a rally in the CBOT soy complex spilled over to provide  support.
Commercials and fund traders were both on the buy side in canola,  according to a broker. The tightening supply situation in western  Canada kept exporters and domestic crushers looking to secure some  supplies while they still can, said participants.
In addition, the lack of follow-through selling on Wednesday’s  late session declines had speculative fund traders looking to rebuild  their long positions in canola.
The weaker Canadian dollar provided further support, as currency  took back most of its gains from the previous session.
However, with the move higher in the futures farmer selling was  also said to be picking up. The increased hedges did keep a lid on  the gains in canola, said traders.
Ideas that canola is looking overpriced compared to other oilseed  markets also weighed on values, and caused canola to lag soybeans to  the upside.
About 19,350 canola contracts were traded on Thursday, which  compares with Wednesday when 13,687 contracts changed hands.  Spreading accounted for about 15,310 of the contracts traded.
Milling wheat futures were untraded, but were revised higher  after the close. Durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price      Change

Canola            Nov     611.30    up 6.20

Jan     610.20    up 6.00

Mar     608.80    up 6.70

Milling Wheat     Dec     301.90    up 3.00

Mar     311.40    up 3.00

Durum             Dec     312.40    unch

Mar     319.00    unch

Barley            Dec     250.00    unch

Mar     253.00    unch

Commodity futures

Futures Prices as of May 17, 2013

Canola Price Change
November611.306.20
January610.206.00
March608.806.70
Milling Wheat Price Change
December301.903.00
March311.403.00
Durum Price Change
December312.40
March319.00
New Barley Price Change
December250.00
March253.00

Prices are in Canadian dollars per metric ton

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