ICE Canada Review: Canola Weakens With Spec Selling

By Phil Franz-Warkentin, Commodity News Service Canada
Oct. 15, 2012
Winnipeg – ICE Futures Canada canola contracts  closed lower on Monday, falling below nearby chart support as losses  in CBOT soybeans spilled over to weigh on prices.
Expectations for a large South American soybean crop, chart-based  liquidation, and ongoing US harvest pressure were all said to be  behind some of the weakness in soybeans that spilled into the Canadian  market. Speculators were behind much of the selling pressure,  although the larger fund traders kept to the sidelines in canola,  according to a Winnipeg-based broker.
The move below psychological support at C$600 per tonne in the  November canola contract triggered sell-stops as well, contributing  to the losses, said participants.
However, canola did lag soybeans to the downside, as concerns  over tightening supplies in western Canada provided support.
Farmers also remain reluctant sellers, keeping the hedge  pressure to a minimum, said a broker. That lack of farmer deliveries  was forcing exporters and domestic crushers to pay up in order to  secure supplies.
About 21,718 canola contracts were traded on Monday, which  compares with Friday when 21,242 contracts changed hands. Spreading  accounted for about 16,722 of the contracts traded.
Milling wheat, durum, and barley futures were untraded and  unchanged. 

Price      Change

Canola            Nov     596.70    dn 10.00

Jan     595.70    dn  9.90

Mar     593.50    dn  9.30

Milling Wheat     Dec     297.40    unch

Mar     306.90    unch

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
November596.7010.00
January595.709.90
March593.509.30
Milling Wheat Price Change
December297.40
March306.90
Durum Price Change
December312.40
Ma319.00
New Barley Price Change
December250.00
March253.00

Prices are in Canadian dollars per metric ton

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