ICE Canola Up With Soybeans

By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 3, 2012
Winnipeg – Canola contracts on the ICE Futures  Canada platform were higher at 10:45 CST Monday, as gains in the CBOT  soy complex spilled over to provide support.
“Bean oil is on fire, and canola is getting dragged up as well,”  said a canola broker. Weather concerns for the South American soybean  crop were also supportive for the oilseeds in general, as excessive  moisture in Argentina continues to delay planting operations.

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A lack of significant farmer selling, as producers appear  content to wait until the New Year to make more sales, added to the  firmer tone, according to participants.
Statistics Canada releases its final production estimates of the  year on Wednesday, and short-covering ahead of the report was also  supportive for canola, said a broker.
In October StatsCan pegged the country’s 2012 canola production  at 13.3 million tonnes, which was well below the 14.5 million tonne  crop grown in 2011. Most analysts aren’t anticipating a large change  from the past report, with general expectations ranging from about  13.0 tonnes to 14.0 million tonnes.
The outside financial markets were starting to weaken as the day  progressed, which limited the upside potential in the grains and  oilseeds, according to participants.
Technical resistance to the upside was also said to be keeping  the gains in check, as the January contract neared the psychological  C$600 per tonne level.
At 10:45 CST, about 6,700 canola contracts had changed hands with  intermonth spreading a feature of the activity.
Milling wheat, durum, and barley futures were all untraded and  unchanged.
Prices in Canadian dollars per metric ton at 10:45 CST:Price      Change

Canola            Jan     596.60    up  2.30

Mar     596.30    up  2.20

May     595.70    up  3.70

Milling Wheat     Dec     300.60      unch

Mar     308.60      unch

Durum             Dec     312.00      unch

Mar     316.00      unch

Barley            Dec     245.00      unch

Mar     248.00      unch

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