ICE Canola Down, Following CBOT Soybeans

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By Terryn Shiells, Commodity News Service Canada

December 7, 2012

WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 8:35 CST Friday, following the losses seen in the CBOT soybean complex, analysts said.

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Much of the price softness in the CBOT soybean complex was linked to the taking of profits by a variety of market players, traders noted.
Forecasts calling for improved weather conditions for the planting and development of soybean crops in Brazil also put downward pressure on both canola and soybean values.
Losses seen in European rapeseed and Malaysian palm oil futures during overnight trade also fuelled some of the declines in canola.
The upswing in the value of the Canadian dollar also added to the bearish price sentiment, as it made canola more expensive for outside buyers.
Ideas that canola is overpriced compared to other oilseeds also generated some of the downward price action, participants noted.
Activity was on the lighter side on Friday morning, with about 950 canola contracts traded as of 8:35 CST.

Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:35 CST:

		Price	Change
Canola
	Jan	597.50	dn 1.90 Mar 594.20 dn 2.90 May 593.00 dn 2.50 Milling Wheat Dec 290.90 unch Mar 303.40 unch Durum Dec 312.00 unch Mar 316.00 unch Barley Dec 245.00 unch Mar 248.00 unch