ICE Canola Corrects Higher

By Terryn Shiells, Commodity News Service Canada
September 25, 2012
WINNIPEG – Canola contracts on the ICE  Futures Canada platform were trading at stronger price levels at  8:27 CDT, as recent losses were seen as overdone and in need of  an upward correction, analysts said.
Canola was also supported by the advances seen in the CBOT  soybean complex. Much of the strength in CBOT soybeans was linked  to a technical correction to the upside and a jump in end user  buying, traders said.
Gains seen in Malaysian palm oil and European rapeseed  futures during overnight trade also added to the bullish price  sentiment in canola.
Concerns that Canadian canola supplies will be very tight and  the need to ration demand also generated some of the price  strength. Some participants think production will be much lower  than Statistics Canada’s August 22 estimate of 15.4 million  tonnes.
Slow farmer selling, as they wait for higher prices, was also  responsible for some of the upward price climb.
However, the upswing in the value of the Canadian dollar  limited the advances. The stronger Canadian currency makes canola  more expensive for foreign buyers.
Improving conditions for the planting of soybeans in South  America also tempered the gains in canola, participants said.
As of 8:27 CDT, about 615 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:27  CDT:
Price Change
Canola
Nov      615.00 up  3.60                  Jan     618.50   up  3.60                  Mar     618.10   up  3.80 Milling Wheat Oct     301.50     unch                  Dec     306.70     unch Durum Oct     311.90     unch                  Dec     316.40     unch  Barley Oct     250.30     unch                  Dec     255.30     unch

Commodity futures

Futures Prices as of June 19, 2013

Canola Price Change
Nov615.003.60
Jan618.503.60
Mar618.103.80
Milling Wheat Price Change
Oct301.50
Dec306.70
Durum Price Change
Oct311.90
Dec316.40
New Barley Price Change
Oct250.30
Dec255.30

Prices are in Canadian dollars per metric ton

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