ICE Canola Down With Pressure From Farmer Selling

By Terryn Shiells, Commodity News Service Canada
August 8, 2012
WINNIPEG – Canola contracts on the ICE  Futures Canada platform were trading at lower price levels at 10:34  CDT Wednesday, as pressure from farmer selling weighed on values,  analysts said.
Weakness in the CBOT soybean complex also added to the bearish  price sentiment for canola. Improved weather in the US Midwest was  responsible for much of the price weakness in the CBOT soybean  complex, traders said.
Positioning ahead of the USDA supply and demand report on  Friday also weighed on the CBOT soybean complex, which spilled over  to weigh on canola values.
Sharp declines seen during overnight trade in Malaysian palm  oil also helped canola move to the downside, market watchers said.
Strength in the Canadian dollar, as it remains above parity  with its US counterpart, was also responsible for some of the  downward price action.
Speculative long liquidation by a variety of market players  was also an undermining price influence for canola at midday  Wednesday, brokers said.
Generally good conditions for the development of canola and  the advancement of the harvest in some regions across western  Canada added to the bearish price sentiment.

As of 10:34 CDT, about 7,700 canola contracts had traded.

Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:34  CDT:

Price Change
Canola
Nov      598.30 dn  4.10                  Jan     602.30   dn  3.80                  Mar     604.00   dn  3.50 Milling Wheat Oct     300.90     unch                  Dec     308.00     unch Durum Oct     309.00     unch                  Dec     313.50     unch  Barley Oct     264.50     unch                  Dec     269.50     unch

Commodity futures

Futures Prices as of May 22, 2013

Canola Price Change
Nov598.304.10
Jan602.303.80
Mar604.003.50
Milling Wheat Price Change
Oct300.90
Dec308.00
Durum Price Change
Oct309.00
Dec313.50
New Barley Price Change
Oct264.50
Dec269.50

Prices are in Canadian dollars per metric ton

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