ICE Canola Stronger With Soybean Gains

By Terryn Shiells, Commodity News Service Canada
August 23, 2012
WINNIPEG – Canola futures on the ICE  Futures Canada platform were trading at stronger price levels at  8:36 CDT, following the strength seen in the CBOT soybean complex,  analysts said.
Much of the upward price action seen in the CBOT soybean  complex was generated by the reduced yield potential in the US  Midwest, market watchers said.
Expectations that global soybean supplies will be tight  amidst strong demand were also supportive for both CBOT soybeans  and canola, brokers said.
Canola also found support from lower than expected production  numbers released by Statistics Canada on Wednesday. Canola  production is expected to be about 15.4 million tons in 2012/13  (Aug/Jul), which compares to pre-report expectations of 15.5 to  17 million tons.
Steady domestic crusher demand and the slowing of farmer  deliveries into the cash pipeline also helped canola move to the  upside, traders said.
The downswing in the value of the Canadian dollar was also  supportive for canola as it made the commodity more attractive to  foreign buyers.
However, weakness in Malaysian palm oil and European rapeseed  futures during overnight trade tempered the advances.
Profit-taking after recent highs was also an undermining  price influence in canola, participants said.
As of 8:36 CDT, about 2,965 canola contracts had traded.

Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:36  CDT:

Price Change
Canola
Nov      635.10 up  1.90                  Jan     639.20   up  2.20                  Mar     638.00     unch Milling Wheat Oct     296.70     unch                  Dec     303.70     unch Durum Oct     301.10     unch                  Dec     305.60     unch  Barley Oct     264.50     unch                  Dec     269.50     unch

Commodity futures

Futures Prices as of May 21, 2013

Canola Price Change
Nov635.101.90
Jan639.202.20
Mar638.00
Milling Wheat Price Change
Oct296.70
Dec303.70
Durum Price Change
Oct301.10
Dec305.60
New Barley Price Change
Oct264.50
Dec269.50

Prices are in Canadian dollars per metric ton

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