ICE Canola Firmer With Lower-Than-Expected Yields

By Terryn Shiells, Commodity News Service Canada
September 5, 2012
WINNIPEG Canola futures on the ICE  Futures Canada platform were trading at firmer price levels at 8:39  CDT, as concerns about canola yields in western Canada were  supportive for values, analysts said.
As the canola harvest progressed in western Canada, more  farmers were reporting yields that were lower than they expected.  Disease, extreme heat and insects were responsible for the lower  yields.
The downswing in the value of the Canadian dollar and the  pricing of old export business also added to the bullish price  sentiment.
Steady domestic crusher demand also helped canola values move  to the upside, brokers said.
Concerns about the tight global oilseed supply situation and  delays to the start of soybean planting in South America also  provided some of the upward price push in canola.
However, weakness in outside oilseed markets limited the  advances. The declines in European rapeseed, Malaysian palm oil  and CBOT soybean futures undermined canola values.
Generally good conditions for the advancement of the canola  harvest in western Canada also tempered the gains, market watchers  said.
As of 8:39 CDT, about 1,300 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:39 CDT:
Price Change
Canola
Nov      636.30 up  2.90                  Jan     639.50   up  2.30                  Mar     637.10   up  0.70 Milling Wheat Oct     298.60     unch                  Dec     306.10     unch Durum Oct     300.60     unch                  Dec     305.10     unch  Barley Oct     264.50     unch                  Dec     269.50     unch

Commodity futures

Futures Prices as of May 22, 2013

Canola Price Change
Nov636.302.90
Jan638.502.30
Mar637.100.70
Milling Wheat Price Change
Oct298.60
Dec306.10
Durum Price Change
Oct300.60
Dec305.10
New Barley Price Change
Oct264.50
Dec269.50

Prices are in Canadian dollars per metric ton

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