ICE Canola Lower With Outside Oilseeds

By Terryn Shiells, Commodity News Service Canada
July 26, 2012
WINNIPEG – Canola contracts on the ICE  Futures Canada platform were trading at lower price levels at 10:39  CDT, following losses in outside oilseed markets, analysts said.
Canola followed the weakness seen in the CBOT soybean  complex. Soybeans were down at midday Thursday because of reports  that much needed rain was seen in growing regions across the US  Midwest.
Sharp declines seen in Malaysian palm oil and European  rapeseed futures overnight also put downward pressure on canola  values, participants said.
Continued farmer selling of both old and new crop canola was  also responsible for some of the downward price slide, traders  said.
Ideal weather conditions for the development of canola in  many regions across the Canadian prairies also weighed on values.  Some producers in Manitoba have already started harvesting canola,  market watchers said.
The stronger Canadian dollar versus its US counterpart added  to the bearish price sentiment, as it made canola less attractive  to foreign buyers.
A “struggling” crush margin, which was down between C$6.00  and C$7.00 compared to the last couple of days, added to the price  weakness, a Winnipeg-based trader said.
Activity was light at midday, as was spread trade, which  contributed to a “choppy” market, brokers said. As of 10:39 CDT,  about 4,030 canola contracts had traded, 1,546 of which were  attributed to spreading.

Durum, barley and milling wheat were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:39  CDT:

Price Change
Canola
Nov      613.80 dn  2.90                  Jan     615.10   dn  3.80                  Mar     616.60   dn  3.10 Milling Wheat Oct     330.00     unch                  Dec     337.50     unch Durum Oct     330.40     unch                  Dec     334.90     unch  Barley Oct     264.50     unch                  Dec     269.50     unch

Commodity futures

Futures Prices as of May 17, 2013

Canola Price Change
Nov613.802.90
Jan615.103.80
Mar616.603.10
Milling Wheat Price Change
Oct330.00
Dec337.50
Durum Price Change
Oct330.40
Dec334.90
New Barley Price Change
Oct264.50
Dec269.50

Prices are in Canadian dollars per metric ton

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