ICE Canola Corrects Higher

By Phil Franz-Warkentin, Commodity News Service Canada
Oct. 16, 2012
Winnipeg – Canola contracts on the ICE Futures  Canada platform were stronger at 10:50 CDT Tuesday, seeing a  corrective bounce from Monday’s declines.
Advances in the CBOT soy complex accounted for some of the  spillover buying interest in canola, according to a broker. The weaker  tone in the Canadian dollar, which was down by about half a cent  relative to its US counterpart, was also supportive.
Speculative short-covering and end-user pricing were both  behind the buying interest in canola, said a broker. The tightening  supply situation in western Canada was keeping exporters and domestic  crushers showing good demand.
On the other side, farmer selling and commercial hedges did  temper the gains to some extent. While Canadian producers are still  generally said to be holding out for higher prices, the recent losses  likely undercut some expectations for further gains.
Relatively good weather conditions for the South American  soybean growing regions were also limiting the advances in the North  American oilseeds.
At 10:50 CDT, about 13,000 canola contracts had changed hands.  Intermonth spreading was a feature, as participants continue to roll  out of the nearby November contract.
Milling wheat, durum, and barley futures were all untraded and  unchanged.
Prices in Canadian dollars per metric ton at 10:50 CDT:Price      Change

Canola            Nov     606.30    up  9.60

Jan     605.30    up  9.60

Mar     602.50    up  9.00

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
November606.309.60
January605.309.60
March602.509.00
Milling Wheat Price Change
December297.40
March306.90
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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