ICE Canola Down, Catching Up To Soybeans

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By Phil Franz-Warkentin, Commodity News Service Canada

Nov. 13, 2012

Winnipeg – ICE Canada canola futures were down Tuesday morning, as the market was said to be ‘playing catch up’ with the CBOT soy complex. Soybeans dropped sharply on Monday while the Canadian market was closed for Remembrance Day.

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Speculators were heavy sellers in the soybean market on Monday, liquidating their long positions, according to traders. Speculative selling was also a feature in canola on Tuesday, although the corrective bounce in soybeans did temper the losses.
Concerns over the size of Canada’s canola crop, and the need to ration supplies going forward, did provide some underlying support as well, according to participants.
The January canola contract was trading just above its key 200-day moving average in early activity. An analyst said a break below the C$580 level would likely trigger additional speculative selling in the futures.
About 3,400 canola contracts had traded as of 8:51 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged Tuesday morning.
Prices in Canadian dollars per metric ton at 8:51 CST:Price Change

Canola Jan 581.90 dn 9.50

Mar 580.10 dn 9.30

May 578.50 dn 8.00

Milling Wheat Dec 310.30 unch

Mar 319.80 unch

Durum Dec 312.40 unch

Mar 319.00 unch

Barley Dec 250.00 unch

Mar 253.00 unch