ICE Canola Down, Lacking Follow-Through Demand

By Phil Franz-Warkentin, Commodity News Service Canada

Nov. 20, 2012

Winnipeg – ICE Canada canola futures were weaker  Tuesday morning, as the market failed to see any follow-through buying  interest on Monday’s firmer close.

Losses in CBOT soybeans, which were brought on by improving South  American crop prospects, provided the catalyst for the downturn in  canola, according to traders.

The overall technical trend also remains pointed lower in  canola, according to analysts. As a result, any attempts at taking  prices higher were seen as good selling opportunities.

Tightening Canadian canola supplies and the need to ration  demand going forward did provide some underlying support, said  traders.

Participants cautioned that activity in the grain and oilseed  markets could turn choppy, as US traders move to the sidelines and  square positions ahead of that country’s Thanksgiving holiday.

About 1,600 canola contracts had traded as of 8:40 CST.

Milling wheat, durum, and barley futures were all untraded and  unchanged Tuesday morning.

Prices in Canadian dollars per metric ton at 8:40 CST:Price      Change


Canola            Jan     577.60    dn  2.40


Mar     574.00    dn  3.40


May     573.00    dn  3.20


Milling Wheat     Dec     300.20    unch


Mar     309.70    unch


Durum             Dec     311.90    unch


Mar     318.50    unch


Barley            Dec     250.00    unch


Mar     253.00    unch

Commodity futures

Futures Prices as of April 24, 2014

Canola Price Change
January577.602.40
March574.003.40
May573.003.20
Milling Wheat Price Change
December300.20
March309.70
Durum Price Change
December311.90
March318.50
New Barley Price Change
December250.00
March253.00

Prices are in Canadian dollars per metric ton