ICE Canola Moves Higher with Speculative Buying

By Terryn Shiells, Commodity News Service Canada
July 31, 2012
WINNIPEG – Canola contracts on the ICE  Futures Canada platform were trading at mostly higher price levels  at 10:37 CDT Tuesday, bouncing back from losses seen in early  morning trade.
A strong combination of commercial and speculative buying  helped move canola values to the upside, traders said.
Canola values were strong despite two-sided trade in the US  markets, including the CBOT soybean complex, industry watchers  said.
“Volume is a little bit on the skinny side, but if you need  to own it you’ve actually got to take the market up to find it and  that’s certainly giving us some support today,” a broker said.
Advances in the CBOT soybean complex, fuelled by drought  conditions in the US Midwest, were also responsible for some of  the upward price action seen in canola.
However, generally good conditions for the development of  canola and the advancement of the harvest in some areas across the  Canadian prairies restricted the advances.
Declines seen in Malaysian palm oil and European rapeseed  overnight also limited canola’s potential to move higher.
Spread activity was “wacky” and on the lighter side at midday  Tuesday, participants said. As of 10:37 CDT, about 7,550 canola  contracts had traded.

Durum, barley and milling wheat were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:37  CDT:

Price Change
Canola
Nov      625.00 up  1.40                  Jan     627.00   up  0.70                  Mar     627.80   up  0.30 Milling Wheat Oct     327.50     unch                  Dec     335.00     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 24, 2013

Canola Price Change
Nov625.001.40
Jan627.000.70
Mar627.800.30
Milling Wheat Price Change
Oct327.50
Dec335.00
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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