ICE Canada Review: Canola Bounces Higher With Beans

By Phil Franz-Warkentin, Commodity News Service Canada
Nov. 19, 2012
Winnipeg – ICE Futures Canada canola contracts  closed higher on Monday, seeing a short-covering bounce off of last  week’s declines amid ideas that prices had become overdone to the  downside.
Gains in CBOT soybeans and soyoil provided the catalyst for the  move higher in canola, according to participants.
Canola futures were said to be due for a short-covering  correction from a technical standpoint after dropping to their  weakest levels since June.
Some end-user bargain hunting was also evident Monday, with  exporters and domestic crushers both pricing old business.
A lack of significant farmer selling, as producers appear  content to hold out for higher prices, was also supportive, according  to participants.
However, the stronger Canadian dollar, which was trading back  above parity with its US counterpart, limited the advances.
Expectations for a large South American soybean crop also helped  keep the gains in check.
About 14,682 canola contracts were traded on Monday, which  compares with Friday when 13,272 contracts changed hands. Spreading  accounted for about 8,166 of the contracts traded.
Milling wheat and durum futures were untraded, but revised lower  after the close. Barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price      Change

Canola            Jan     580.00    up 4.30

Mar     577.30    up 4.00

May     576.20    up 4.60

Milling Wheat     Dec     300.30    dn 3.30

Mar     309.70    dn 3.30

Durum             Dec     311.90    dn 0.50

Mar     318.50    dn 0.50

Barley            Dec     250.00    unch

Mar     253.00    unch

Futures Prices as of November 19, 2012

Price Change
Milling Wheat
2017-12-15 09:58
Price Change
December 300.30 3.30
March 309.70 3.30
2017-12-15 09:58
Price Change
December 311.90 0.50
March 318.50 0.50
New Barley
2017-12-15 09:58
Price Change
December 250.00
March 253.00

Prices are in Canadian dollars per metric ton


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