ICE Canada Review: Canola Down Ahead Of Weekend

By Phil Franz-Warkentin, Commodity News Service Canada

Dec. 7, 2012

Winnipeg – ICE Futures Canada canola contracts  closed lower on Friday, as bearish technical signals, spillover from  the losses in CBOT soybeans, and an increase in farmer selling all  weighed on prices.

The bounce seen earlier this week was said to have encouraged  an increase in farmer sales, which accounted for the resulting hedge  pressure in the market on Friday, according to participants.

Bearish technical signals added to the declines, as the failure  of the January contract to show much follow-through strength above  the psychological C$600 per tonne level weighed on prices as well,  said a broker.

Losses in the CBOT soy complex and a firmer tone in the Canadian  dollar added to the weakness in canola, said traders.

Concerns over tightening Canadian canola supplies did remain  somewhat supportive, limiting the losses. Scale-down end user demand,  as exporters and domestic crushers were taking advantage of the  declines to book some coverage, was also supportive.

About 23,267 canola contracts were traded on Friday, which  compares with Thursday when 13,117 contracts changed hands. Spreading  was a feature, accounting for about 20,184 of the contracts traded.

Milling wheat futures were down in thin two-sided commercial  activity. Durum and barley futures were untraded and unchanged.

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

Canola            Jan     598.60    dn 0.80

Mar     595.10    dn 2.00

May     593.30    dn 2.20

Milling Wheat     Dec     289.20    dn 1.70

Mar     301.70    dn 1.70

Durum             Dec     312.00    unch

Mar     316.00    unch

Barley            Dec     245.00    unch

Mar     248.00    unch

Commodity Future Prices

Price Change
Milling Wheat
updated 2016-09-25 17:34
Price Change
updated 2016-09-25 17:34
Price Change
New Barley
updated 2016-09-25 17:34
Price Change

Prices are in Canadian dollars per metric ton