ICE Canola Lower, Playing Catch-up With US Markets

By Terryn Shiells, Commodity News Service Canada
August 17, 2012
WINNIPEG – Canola contracts on the ICE  Futures Canada platform were trading at slightly lower price  levels at 10:35 CDT Friday, as the market was catching up to the  losses seen in CBOT soybeans on Thursday, analysts said.
Canola futures finished firmer than soybeans at the close on  Thursday and needed to move lower at midday Friday to catch up with  the US market, traders said.
Pressure from the advancing harvest in western Canada and  increased sales from farmers into the cash pipeline also helped  canola move lower.
Firmness in the Canadian dollar, as it stayed above parity  with its US counterpart also added to the bearish sentiment, as  it made canola more expensive for foreign buyers.
Weather forecasts calling for prolonged cooler temperatures  and precipitation in the main soybean growing regions across the  US Midwest were also an undermining factor in the canola market,  participants said.
However, small advances during overnight trade in Malaysian  palm oil helped to slow the declines.
Speculative buying interest and steady domestic demand also  limited the losses in canola, analysts said.
The market was fairly “choppy” amidst light trade at midday  Friday. Traders were sitting on the sidelines, waiting for more  clarity about the US and Canadian crop situations before getting  more involved in the market, brokers said.
As of 10:35 CDT, about 2,145 canola contracts had traded.

Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:35  CDT:

Price Change
Canola
Nov      610.80 unch                  Jan     615.00   dn  0.20                  Mar     614.90   dn  2.40 Milling Wheat Oct     292.40     unch                  Dec     298.00     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
Nov610.80
Jan615.000.20
Mar614.902.40
Milling Wheat Price Change
Oct292.40
Dec298.00
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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