ICE Canola Drops With Outside Oilseeds

By Terryn Shiells, Commodity News Service Canada
August 1, 2012
WINNIPEG – Canola contracts on the ICE  Futures Canada platform were trading at lower price levels at 10:33  CDT Wednesday, following weakness in outside oilseed markets,  analysts said.
Declines seen in the CBOT soybean complex were responsible  for some of the price weakness experienced by canola, participants  said.
Profit taking, and news of a possible weather shift next week  in the US Midwest were responsible for the CBOT soybean complex’s  move to the downside, traders said.
Canola sank lower than the CBOT soybean complex, because the  Canadian canola crop is going to be considerably larger than the  US soybean crop, a Winnipeg based trader said.
Losses in Malaysian palm oil and European rapeseed futures  during overnight trade also added to the bearish price sentiment.
Canola values were also lower as some market players caused  a late rally near the close of trade on Tuesday and the market was  in need of a downward correction.
Generally good conditions for the development of canola, and  the advancement of the harvest in some regions in Manitoba also  generated some of the downward price action.
However, the firmer tone in the value of the Canadian dollar  tempered the losses, as it made canola a more attractive option  for foreign buyers.
As of 10:33 CDT, about 8,100 canola contracts had traded.

Durum, barley and milling wheat were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:33  CDT:

Price Change
Canola
Nov      616.10 dn 15.20                  Jan     620.00   dn 13.50                  Mar     619.00   dn 16.00 Milling Wheat Oct     317.50     unch                  Dec     325.00     unch Durum Oct     325.50     unch                  Dec     330.00     unch  Barley Oct     264.50     unch                  Dec     269.50     unch

Commodity futures

Futures Prices as of May 22, 2013

Canola Price Change
Nov616.1015.20
Jan620.0013.50
Mar619.0016.00
Milling Wheat Price Change
Oct317.50
Dec325.00
Durum Price Change
Oct325.50
Dec330.00
New Barley Price Change
Oct264.50
Dec269.50

Prices are in Canadian dollars per metric ton

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