ICE Canola Down With Soybeans, Farmer Hedges

By Phil Franz-Warkentin, Commodity News Service Canada

Dec. 7, 2012

Winnipeg – Canola contracts on the ICE Futures  Canada platform were weaker at 10:45 CST Friday, as spillover from  the losses in the CBOT soy complex and an increase in farmer hedges  weighed on values.

The bounce seen earlier in the week encouraged an uptick in  farmer sales, according to a broker accounting for the resulting hedge  pressure in the market on Friday. He said the failure of the January  contract to hold above the psychological C$600 per tonne level was  also bearish, with some light speculative selling also a feature.

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

However, outright volumes were very thin, with the majority of  the trade tied to intermonth spreading. The January/March spread  accounted for most of the volumes, as participants were busy rolling  out of the front month.

Concerns over tightening Canadian canola supplies did remain  somewhat supportive, limiting the losses. Solid end user demand and  production uncertainty for soybeans in South America helped limit the  losses as well.

At 10:45 CST, about 10,000 canola contracts had changed hands  with intermonth spreading a feature.

Milling wheat futures were lower, as the thinly traded commodity  continues to see participants exit the December contract. Durum and  barley futures were untraded and unchanged.

Prices in Canadian dollars per metric ton at 10:45 CST:Price      Change


Canola            Jan     597.90    dn  1.50


Mar     594.10    dn  3.00


May     592.60    dn  2.90


Milling Wheat     Dec     289.10    dn  1.80


Mar     301.60    dn  1.80


Durum             Dec     312.00      unch


Mar     316.00      unch


Barley            Dec     245.00      unch


Mar     248.00      unch

Commodity futures

Futures Prices as of September 2, 2014

Canola Price Change
January597.901.50
March594.103.00
May592.602.90
Milling Wheat Price Change
December289.101.80
March301.601.80
Durum Price Change
December312.00
March316.00
New Barley Price Change
December245.00
March248.00

Prices are in Canadian dollars per metric ton