ICE Canada Review: Canola Mostly Lower As CBOT Declines

By Dwayne Klassen, Commodity News Service Canada Inc.

Winnipeg – Jan 18/12 – Canola contracts on the ICE Futures Canada trading platform ended Wednesday’s session on the defensive with only the nearby March and May future managing to settle with small gains. Weakness in CBOT soybean and soyoil futures helped to encourage the price weakness as did the strength displayed by the Canadian dollar, market watchers said.

A good portion of the volume total in canola consisted of spreading.

Losses overnight in Malaysian palm oil and European rapeseed futures helped to send canola prices downward, traders said. Some of the selling in canola also reflected steady farmer deliveries into the country elevator system despite the Arctic weather which has hit the Canadian prairies.

The improved weather for the development of the soybean crops in Brazil and Argentina also added to the bearish price sentiment.

The downside in canola was restricted by steady commercial demand at the lows. Some of that interest was said to be covering domestic crusher needs as well as old export business, brokers said.

The buying back of previously sold positions by a variety of market participants also offered some of the nearby canola contracts some late support.

There were an estimated 19,978 canola contracts traded Wednesday, up from the 15,617 contracts that changed hands during the previous session. Of the contracts that traded, 17,696 were spread related.

There were no western barley contracts traded during the session.

Prices are in Canadian dollars per metric ton.