ICE Canola Strengthens With Follow-Through Buying

By Phil Franz-Warkentin, Commodity News Service Canada
Oct. 5, 2012
Winnipeg – Canola contracts on the ICE Futures  Canada platform were stronger at 10:47 CDT Friday, seeing some  follow-through buying interest on Thursday’s rally.
“We’re seeing the hangover from the StatsCan report,” said a  Winnipeg-based trader. The latest StatsCan survey results, released  October 4, estimated this year’s Canadian canola crop at 13.4 million  metric tonnes. That was a two million tonne reduction from the  previous report and below the 14.5 million tonne crop grown in 2011.
The tighter supply situation means the market will need to work  to ration demand going forward, accounting for some of the strength  in the futures, according to traders. Domestic crushers were noted  buyers.
Improving technical signals were also supportive for canola, as  the nearby bias has turned to the upside, said a broker. However, fund  traders were largely on the sidelines after exiting their long  positions in recent weeks.
A stronger Canadian dollar and losses in CBOT soyoil did limit  the advances in canola, according to participants. A reluctance to  push values too far ahead of the Thanksgiving long weekend also  tempered the gains.
Canadian markets will be closed Monday, October 8, for  Thanksgiving, while US markets will remain open.
At 10:47 CDT, about 9,300 canola contracts had changed hands.  Intermonth spreading was a feature, accounting for about 5,000 of the  contracts traded.
Milling wheat, durum, and barley futures were all untraded and  unchanged.
Prices in Canadian dollars per metric ton at 10:47 CDT:Price      Change

Canola            Nov     609.50    up 3.00

Jan     608.70    up 4.20

Mar     605.40    up 4.70

Milling Wheat     Oct     293.30      unch

Dec     298.50      unch

Durum             Oct     309.00      unch

Dec     313.50      unch

Barley            Oct     245.00      unch

Dec     250.00      unch

Commodity futures

Futures Prices as of May 21, 2013

Canola Price Change
November609.503.00
January608.704.20
March605.404.70
Milling Wheat Price Change
October293.30
December298.50
Durum Price Change
October309.00
December313.50
New Barley Price Change
October245.00
December250.00

Prices are in Canadian dollars per metric ton

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