ICE Canola Higher Following CBOT Soybean Rally

By Dwayne Klassen, Commodity News Service Canada
August 20, 2012
WINNIPEG – Canola contracts on the ICE  Futures Canada platform were trading at higher price levels at  10:39 CDT Monday, with the rally in the CBOT soybean complex  providing the upward price push, market watchers said.
The triggering of speculative and commodity fund buy orders  on the way up helped to amplify the price advances.
Traders noted that it did not take much in the way of buying  to push values up in the thin activity.
“We’re hearing that crop tours in the US are finding lower  than anticipated soybean yields and that in turn has sparked some  aggressive buying in Chicago and here,” a broker said.
A slowdown in the level of hedge selling by elevator companies  has also generated support for canola, traders said. Some fairly  heavy pre- hedging on Friday had been evident, as elevator  companies prepared for increased farmer deliveries of both old  crop canola and new crop canola off the combine. However, the  canola harvest in both Saskatchewan and Alberta, where the bulk of the crop is located, has yet to pick  up steam.
Some light commercial pricing of canola, believed to be old  export business, also provided some underlying support for canola  futures.
The upside in canola was being capped by the general firmness  of the Canadian dollar against other foreign currencies, brokers  said.
As of 10:39 CDT, about 5,581 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:39  CDT:
Price Change
Canola
Nov      615.30 up  7.00                  Jan     620.50   up  8.10                  Mar     621.20   up  6.90 Milling Wheat Oct     293.00     unch                  Dec     298.60     unch Durum Oct     299.20     unch                  Dec     303.70     unch  Barley Oct     264.50     unch                  Dec     269.50     unch

Commodity futures

Futures Prices as of May 17, 2013

Canola Price Change
Nov615.307.00
Jan620.508.10
Mar621.206.90
Milling Wheat Price Change
Oct293.00
Dec298.60
Durum Price Change
Oct299.20
Dec303.70
New Barley Price Change
Oct264.50
Dec269.50

Prices are in Canadian dollars per metric ton

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