ICE Canada Review: Overpriced Canola Edges Down At Close

By Phil Franz-Warkentin, Commodity News Service Canada
Oct. 17, 2012
Winnipeg – ICE Futures Canada canola contracts  closed lower in most months on Wednesday, despite gains in the CBOT  soy complex. Ideas that canola was looking overpriced compared to  other oilseeds accounted for some of the eventual weakness in the  lightly traded market.
Exporters and domestic crushers were both on the buy side early  in the day, as concerns over tightening canola supplies going forward  had the commercials looking to make purchases before stocks get too  scarce, said participants.
However, that commercial buying backed away by the close. As a  result, declining crush margins and a lack of significant speculative  interest in the market eventually helped drag prices lower. Farmer  hedges were also said to be putting some pressure on values, although  most of the producer selling was only coming forward on a scale-up  basis.
The Canadian dollar was up by over three quarters of a cent  relative to its US counterpart on Wednesday, weighing further on  canola prices, according to a trader.
About 13,687 canola contracts were traded on Wednesday, which  compares with Tuesday when 21,270 contracts changed hands. Spreading  accounted for about 10,244 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.

Commodity futures

Futures Prices as of May 21, 2013

Canola Price Change
November605.100.50
January604.200.60
March602.100.20
Milling Wheat Price Change
December298.901.50
March308.401.50
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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