ICE Canada Review: Canola Up With Spec, End User Buying

By Phil Franz-Warkentin, Commodity News Service Canada
April 20, 2012
Winnipeg – ICE Futures Canada canola contracts  closed higher on Friday, seeing a recovery from the losses posted  earlier in the week on the back of solid export demand and a return  of speculative buying interest.Fund traders had been noted sellers earlier this week,  liquidating long positions ahead of the April 24 Statistics Canada  planting report. However, that selling ran its course, according  to market participants who said the bounce higher in CBOT soybeans  led to some renewed speculative buying interest in canola as well.

Steady exporter and domestic crusher pricing of old business  provided further support for canola, although confirmation of any  new business was lacking.

Strength in the Canadian dollar did temper the advances in  canola. The generally improving moisture conditions across  western Canada and the likelihood of record large seedings this  spring were also overhanging the market, according to traders.  Acreage estimates ahead of next week’s report range from 19.4  million to 23.0 million acres of canola, which would easily surpass  the previous record set last year of 18.9 million.

About 22,597 canola contracts were traded on Friday, which  compares with Thursday when an estimated 20,446 contracts changed  hands. Inter-month spreading was a feature, accounting for 17,772  of the contracts traded.

Milling wheat futures were lower on Friday with five  contracts traded. Durum and barley were untraded and unchanged.

Settlement prices are in Canadian dollars per metric ton.

Price      Change

Canola            May     622.20    up 7.40

Jul     616.20    up 8.50

Nov     576.50    up 5.80

Western Barley    May     235.00    unch

Jul     235.00    unch

Milling Wheat     Oct     257.00    dn 1.00

Dec     262.00    dn 1.00

Durum             Oct     277.50    unch

Dec     282.00    unch

Barley            Oct     186.50    unch

Dec     190.00    unch

Commodity futures

Futures Prices as of May 24, 2013

Canola Price Change
May622.207.40
July616.208.50
November576.505.80
Milling Wheat Price Change
October257.001.00
December262.001.00
Durum Price Change
October277.500.00
December282.000.00
New Barley Price Change
October186.500.00
December190.000.00

Prices are in Canadian dollars per metric ton

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