ICE Canola Corrects Downward

By Terryn Shiells, Commodity News Service Canada
August 30, 2012
WINNIPEG – Canola futures on the ICE  Futures Canada platform were trading at mostly lower price levels  at 8:33 CDT Thursday, with only the nearby November contract  posting slight gains.
Sentiment that Wednesday’s advances were overdone and in need  of a downward correction weighed on values, industry officials  said.
Some softness seen in CBOT soybean and soyoil futures also  generated some of the downward price action in canola, traders  said.
Profit-taking after Wednesday’s highs helped to bring values  down in CBOT soybeans, soyoil and canola, market watchers said.
Increased deliveries of canola into the cash pipeline by  producers and general firmness in the value of the Canadian dollar  were also undermining price influences, participants said.
Generally good conditions for the advancement of the harvest  across western Canada also put downward pressure on canola values,  brokers said.
Some chart-based liquidation, as traders were squaring  positions ahead of the Labour Day long weekend, added to the  bearish price sentiment.
However, gains posted during overnight trade in both  Malaysian palm oil and European rapeseed provided some underlying  support for canola.
Activity was light and “choppy”, as many traders are waiting  for fresh news in the market before making any big decisions,  participants said.

As of 8:33 CDT, about 460 canola contracts had traded.

Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:33  CDT:

Price Change
Canola
Nov      634.00 up  0.50                  Jan     637.00   dn  0.40                  Mar     634.70   dn  3.60 Milling Wheat Oct     301.80     unch                  Dec     309.00     unch Durum

Commodity futures

Futures Prices as of May 17, 2013

Canola Price Change
Nov634.000.50
Jan637.000.40
Mar634.703.60
Milling Wheat Price Change
Oct301.80
Dec309.00
Durum Price Change
Oct300.50
Dec305.00
New Barley Price Change
Oct264.50
Dec269.50

Prices are in Canadian dollars per metric ton

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