ICE Canada Review: Hedges, Soybeans Weigh On Canola

By Phil Franz-Warkentin, Commodity News Service Canada
Oct. 2, 2012
Winnipeg – ICE Futures Canada canola contracts  closed lower on Tuesday, taking their cue from the weaker CBOT soybean  market once again.
The advancing US soybean harvest and improving South American  crop conditions weighed on the oilseed markets in general, including  canola, according to participants. A lack of fresh export business,  with Chinese buyers on the sidelines for a national holiday, was  another bearish price influence.
The recent weakness in canola has also shifted the technical bias  to the downside, which added to the softer tone in the futures as any  attempts at taking prices were seen as a good selling opportunity.
Steady farmer selling also weighed on prices, as solid cash bids  in western Canada were said to be attracting more farmer deliveries.
Oversold price sentiment and scale-down end-user buying did  provide some underlying support, according to participants.
Statistics Canada releases its latest production estimates on  Thursday, and positioning ahead of the report was behind some of the  activity. Traders are generally expecting a downward revision to the  previous StatsCan canola estimate of 15.4 million metric tons.  However, the extent of the StatsCan revision remains to be seen.
About 17,557 canola contracts were traded on Tuesday, which  compares with Monday when 18,091 contracts changed hands. Spreading  accounted for about 12,132 of the contracts traded.
Milling wheat, durum, and barley futures were untraded, but  revised lower after the close.
Settlement prices are in Canadian dollars per metric ton.Price      Change

Canola            Nov     582.60    dn 6.30

Jan     585.50    dn 6.80

Mar     584.90    dn 6.70

Milling Wheat     Oct     293.60    dn 4.10

Dec     298.80    dn 4.10

Durum             Oct     309.30    dn 2.60

Dec     313.80    dn 2.60

Barley            Oct     245.00    dn 4.50

Dec     250.00    dn 4.50

Commodity futures

Futures Prices as of May 17, 2013

Canola Price Change
November582.606.30
January585.506.80
March584.906.70
Milling Wheat Price Change
October293.604.10
December298.804.10
Durum Price Change
October309.302.60
December313.802.60
New Barley Price Change
October245.004.50
December250.004.50

Prices are in Canadian dollars per metric ton

Respond





You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

COPA MedallionAGCanada.com was a 2012 COPA Finalist.
©2013 AGCanada is a production of FBC Limited Partnership a division of Glacier Media Inc.
Please refer to Copyright Page for details.