ICE Canola Sees Modest Recovery

By Phil Franz-Warkentin, Commodity News Service Canada
Sept. 28, 2012
Winnipeg – Canola contracts on the ICE Futures  Canada platform were firmer at 10:48 CDT Friday, recovering from  earlier declines as gains in CBOT soybeans and ideas that canola was  looking oversold from a technical standpoint provided support.
Larger than expected US soybean stocks, as reported by the USDA  Friday morning, put some early pressure on the North American oilseed  markets, including canola. However, the stocks data was bullish for  wheat and corn. The sharp advances in those commodities pulled  soybeans higher and canola followed suit, according to participants.
Ongoing concerns that Canada’s canola crop may not be large  enough to meet demand this year were also supportive for canola, as  exporters and domestic crushers were showing solid demand.
A lack of significant farmer selling and the softer Canadian  dollar was another supportive feature in the canola market.
While canola was overdue for a corrective bounce after recent  declines, the overall technical bias is still pointing lower. As a  result, any gains were being taken as selling opportunities from a  chart perspective, according to traders.
At 10:48 CDT, about 11,000 canola contracts had changed hands.  Intermonth spreading was a feature, as traders continue to roll out  of the nearby November contract.
Milling wheat, durum, and barley futures were all untraded and  unchanged.
Prices in Canadian dollars per metric ton at 10:48 CDT:

Commodity futures

Futures Prices as of May 21, 2013

Canola Price Change
November596.004.10
January600.004.40
March598.803.20
Milling Wheat Price Change
October290.70
December295.90
Durum Price Change
October311.90
December316.40
New Barley Price Change
October250.30
December255.30

Prices are in Canadian dollars per metric ton

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