ICE review: Canola follows soybeans down

Dwayne Klassen, Resource News International

Winnipeg, March 25 — Canola contracts on the ICE Futures Canada platform finished the day mainly lower with the downward price action associated with the sell-off experienced by CBOT soybean values, market watchers said.

Activity was described as choppy with a number of market participants taking to the sidelines to wait out the U.S. Department of Agriculture’s prospective plantings report ,scheduled for release on March 31. The continued instability regarding the North American financial sector also helped to sideline some market players, brokers said.

Steady commercial and commission house selling took canola futures down, with much of that interest spurred on by the losses seen in CBOT soybeans and in overseas vegetable oil prices, traders said. A drop off in exporter demand contributed to the price weakness as did losses in global crude oil values.

Adding to the downward price action in canola were steady elevator company hedge offers. The pace of country movement was not seen as overwhelming, but decent basis levels in Western Canada were attracting good farmer interest, brokers said.

The losses in canola were kept in check by steady domestic crusher demand and by the pricing of routine export business. Spring road bans in western Canada also provided some minor underlying support. Strength in CBOT soyoil values also helped to provide a firm floor for canola, brokers said.

There were an estimated 11,533 canola contracts traded during Wednesday’s session, up from 6,337 during the previous session. Of the contracts traded Wednesday, 6,238 were spread related.

Western barley futures were lower with only the nearby May contract experiencing any kind of trade volume. Light commercial offerings in the absence of willing buyers allowed the contract to be pushed lower, traders said.

An estimated 1,295 barley contracts changed hands during the session. On Tuesday, 143 barley contracts were traded. Of the contracts traded Wednesday, 1,196 were spread related.

Prices are in Canadian dollars per metric tonne.

Settlement s
          Price    Change
Canola
     May     421.80    dn 0.80
     Jul     425.90    dn 1.90
     Nov     430.80    dn 2.60
 
Western Barley
     May     144.00    dn 2.00
     Jul     151.30    dn 1.10