ICE Canola Closes Lower, CBOT Soybean Declines Bearish

By Dwayne Klassen, Commodity News Service Canada


Winnipeg – November 15/12 – Canola futures on the ICE Canada trading platform finished on the defensive Thursday with the sell-off in CBOT soybean values and the lack of follow-through buying from exporter pricing earlier in the day behind the downward price slide, market watchers said.


Losses in CBOT soybean futures had weighed on canola throughout the day, but when those declines were extended near the close, the weakness in canola was also amplified, brokers said.


Soyoil futures at the CBOT had traded at mainly higher levels for a good portion of the day, but when those prices turned lower at the close, the bearish sentiment in canola was also augmented.


Some early strength in canola had come from the pricing of old Japanese business by commercials. However, once those commitments weere covered, the upside in canola ran out of steam and values turned downwards, brokers said.


The bearish sentiment in canola was augmented by the favourable weather conditions for the development of a record sized soybean crop in South America.


Some chart based speculative and commodity fund liquidation orders were also evident throughout the day, helping to keep canola on the defensive, traders said.


Some underlying support in canola did come from the absence of canola deliveries into the cash market by farmers. Domestic pricing of canola on a scale-down basis, also slowed the price declines seen in the commodity.


There were an estimated 13,072 canola contracts traded Thursday, down from the 14,566 contracts that changed hands during the previous session. Of the contracts that changed hands, 8,796 were spread related.


Milling wheat, barley and durum contracts were untraded and unchanged.


Prices are in Canadian dollars per metric ton.

Commodity futures

Futures Prices as of August 28, 2014

Canola Price Change
January580.504.10
March578.504.40
May576.904.40
Milling Wheat Price Change
December307.00
March316.50
Durum Price Change
December312.40
March319.00
New Barley Price Change
December250.00
March253.00

Prices are in Canadian dollars per metric ton