ICE Canola Drops Below Support

By Phil Franz-Warkentin, Commodity News Service Canada
Sept. 26, 2012
Winnipeg – Canola contracts on the ICE Futures  Canada platform were sharply weaker at 10:53 CDT Wednesday, dropping  below psychological support as a sell-off in CBOT soybeans spilled  over to weigh on values.
Speculative long liquidation was behind much of the selling  pressure in canola, with the move below C$600 per tonne in the November  contract triggering some sell-stops along the way, said participants.  Fund traders were holding very large long positions in canola that  they were bailing out of, said a broker.
A general sense of risk aversion in the outside financial  markets, the advancing US soybean harvest, and improving South  American weather conditions added to the bearish tone in canola,  according to a trader.
Scale-down commercial pricing did provide some underlying  support, as end users remain concerned that Canadian supplies may not  be enough to meet the forecast demand this year. Basis levels were  said to be improving in western Canada, as exporters and domestic  processors look to encourage more farmer sales.
The weaker Canadian dollar also helped slow the declines in  canola, said traders.
At 10:53 CDT, about 14,000 canola contracts had changed hands.  The November/January spread was a feature of the activity as  participants continue to roll out of the front month.
Milling wheat, durum, and barley futures were all untraded and  unchanged.
Prices in Canadian dollars per metric ton at 10:53 CDT:Price      Change

Canola            Nov     591.80    dn 16.70

Jan     596.40    dn 16.20

Mar     594.90    dn 17.00

Milling Wheat     Oct     298.60      unch

Dec     303.80      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 May 17, 2013

Canola Price Change
November591.8016.70
January596.4016.20
March594.9017.00
Milling Wheat Price Change
October298.60
December303.80
Durum Price Change
October311.90
December316.40
New Barley Price Change
October250.30
December255.30

Prices are in Canadian dollars per metric ton

Respond





You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

COPA MedallionAGCanada.com was a 2012 COPA Finalist.
©2013 AGCanada is a production of FBC Limited Partnership a division of Glacier Media Inc.
Please refer to Copyright Page for details.