ICE Canola Softer Ahead Of USDA Report

By Phil Franz-Warkentin, Commodity News Service Canada
Oct. 10, 2012
Winnipeg – ICE Canada canola futures were weaker  Wednesday morning, as a softer tone in CBOT soybeans and other outside  oilseed markets weighed on values.
The USDA releases updated production estimates on Thursday, and  the pre-report positioning keeping the bias to the downside in  soybeans was also accounting for some of the selling pressure in  canola, according to participants.
Record palm oil production in Malaysia in the month of September  was also bearish for the oilseed markets in general, said an analyst.
Ideas that canola was overpriced added to the softer tone, as  crush margins have deteriorated over the past month.
A lack of significant farmer selling did provide some underlying  support, said traders. Concerns over Canada’s smaller canola crop,  as reported by Statistics Canada last week, were also underpinning  the futures as the market will need to work to ration demand going  forward.
About 1,100 canola contracts had traded as of 8:44 CDT.
Milling wheat, durum, and barley futures were all untraded and  unchanged Wednesday morning.
Prices in Canadian dollars per metric ton at 8:44 CDT:Price      Change

Canola            Nov     608.20    dn  3.00

Jan     607.50    dn  2.80

Mar     602.50    dn  3.80

Milling Wheat     Oct     290.50    unch

Dec     295.70    unch

Durum             Oct     308.30    unch

Dec     312.80    unch

Barley            Oct     245.00    unch

Dec     250.00    unch

Commodity futures

Futures Prices as of May 17, 2013

Canola Price Change
November608.203.00
January607.502.80
March602.503.80
Milling Wheat Price Change
October290.50
December295.70
Durum Price Change
October308.30
December312.80
New Barley Price Change
October245.00
December250.00

Prices are in Canadian dollars per metric ton

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