|By Phil Franz-Warkentin, Commodity News Service Canada|
|Nov. 9, 2012|
|Winnipeg – Canola contracts on the ICE Futures Canada platform were sharply lower at 11:18 CST Friday, as the market dropped in sympathy with the CBOT soy complex.
Updated supply/demand estimates released by the USDA this morning were seen as slightly bearish for soybeans, as US soybean production and ending stocks were both revised a little higher than average trade guesses. Private forecaster’s Informa Economics released a separate report predicting US soybean acres next year at 80.1 million acres. That would compare with 77.2 million acres seeded in 2012, and a canola broker said the Informa projection only added to the bearish tone in the oilseed markets.
Fund traders were noted sellers, adding to their short positions in canola, according to a broker. While technical support was holding to the downside at about C$590 per tonne in the January contract, the broker said the fund selling could accelerate if that chart point was breached.
Scale-down end user demand did provide some support, tempering the losses in canola, according to participants. A lack of farmer selling also provided some support.
At 11:18 CST, about 8,600 canola contracts had changed hands with intermonth spreading only a minor factor.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 11:18 CST:Price Change
Canola Jan 592.00 dn 8.20
Mar 590.50 dn 7.50
May 588.00 dn 6.70
Milling Wheat Dec 310.30 unch
Mar 319.80 unch
Durum Dec 312.40 unch
Mar 319.00 unch
Barley Dec 250.00 unch
Mar 253.00 unch
Futures Prices as of December 5, 2013
Prices are in Canadian dollars per metric ton