ICE Canada Review: Canola Weakens In Thin Holiday Trade

By Phil Franz-Warkentin, Commodity News Service Canada

Nov. 22, 2012

Winnipeg – ICE Futures Canada canola contracts were  slightly lower in most months at Thursday’s close. Trade was thin and  choppy, with many participants waiting on the sidelines while US  markets were closed for Thanksgiving.

With no direction from the CBOT soybean market, canola values  were range-bound during the session with intermonth spreading  accounting for nearly all of the trade volumes. The outright trade  that did occur was seen as follow-through and position-evening on what  happened earlier in the week, according to participants.

Ideas that canola is overpriced compared to other oilseeds did  remain a bearish influence overhanging the futures. Speculators and  domestic crushers were both said to be on the sell side.

Beneficial weather for the planting and development of the  soybean crop in Brazil and Argentina also weighed on canola values,  according to traders.

However, slow farmer selling in the cash market, as producers  continue to hold out for higher prices, helped to limit the declines.  Concerns over the tight supply situation in western Canada, the  resulting need to ration demand going forward, also provided some  underlying support, said traders.

About 5,612 canola contracts were traded on Thursday, which  compares with Wednesday when 12,980 contracts changed hands.  Spreading was behind most of the activity, accounting for about 5,388  of the contracts traded. Milling wheat, and barley futures were untraded and unchanged.  Durum held steady in two-sided commercial activity.

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


Canola            Jan     578.40    dn 0.80


Mar     576.00    dn 0.80


May     575.00    dn 0.30


Milling Wheat     Dec     297.30    unch


Mar     306.80    unch


Durum             Dec     312.00    unch


Mar     318.60    unch


Barley            Dec     250.00    unch


Mar     253.00    unch

Commodity futures

Futures Prices as of September 19, 2014

Canola Price Change
January578.400.80
March576.000.80
May575.000.30
Milling Wheat Price Change
December297.30
March306.80
Durum Price Change
December312.00
March318.60
New Barley Price Change
December250.00
March253.00

Prices are in Canadian dollars per metric ton