ICE Canada Review: Canola Bounces Higher With Beans

By Phil Franz-Warkentin, Commodity News Service Canada

Nov. 19, 2012

Winnipeg – ICE Futures Canada canola contracts  closed higher on Monday, seeing a short-covering bounce off of last  week’s declines amid ideas that prices had become overdone to the  downside.

Gains in CBOT soybeans and soyoil provided the catalyst for the  move higher in canola, according to participants.

Canola futures were said to be due for a short-covering  correction from a technical standpoint after dropping to their  weakest levels since June.

Some end-user bargain hunting was also evident Monday, with  exporters and domestic crushers both pricing old business.

A lack of significant farmer selling, as producers appear  content to hold out for higher prices, was also supportive, according  to participants.

However, the stronger Canadian dollar, which was trading back  above parity with its US counterpart, limited the advances.

Expectations for a large South American soybean crop also helped  keep the gains in check.

About 14,682 canola contracts were traded on Monday, which  compares with Friday when 13,272 contracts changed hands. Spreading  accounted for about 8,166 of the contracts traded.

Milling wheat and durum futures were untraded, but revised lower  after the close. Barley futures were untraded and unchanged.

Settlement prices are in Canadian dollars per metric ton.Price      Change


Canola            Jan     580.00    up 4.30


Mar     577.30    up 4.00


May     576.20    up 4.60


Milling Wheat     Dec     300.30    dn 3.30


Mar     309.70    dn 3.30


Durum             Dec     311.90    dn 0.50


Mar     318.50    dn 0.50


Barley            Dec     250.00    unch


Mar     253.00    unch

Commodity futures

Futures Prices as of December 24, 2014

Canola Price Change
January580.004.30
March577.304.00
May576.204.60
Milling Wheat Price Change
December300.303.30
March309.703.30
Durum Price Change
December311.900.50
March318.500.50
New Barley Price Change
December250.00
March253.00

Prices are in Canadian dollars per metric ton