ICE Canola Down Sharply With Soybeans

By Phil Franz-Warkentin, Commodity News Service Canada
Nov. 9, 2012
Winnipeg – Canola contracts on the ICE Futures  Canada platform were sharply lower at 11:18 CST Friday, as the market  dropped in sympathy with the CBOT soy complex.
Updated supply/demand estimates released by the USDA this  morning were seen as slightly bearish for soybeans, as US soybean  production and ending stocks were both revised a little higher than  average trade guesses. Private forecaster’s Informa Economics  released a separate report predicting US soybean acres next year at  80.1 million acres. That would compare with 77.2 million acres seeded  in 2012, and a canola broker said the Informa projection only added  to the bearish tone in the oilseed markets.

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Fund traders were noted sellers, adding to their short positions  in canola, according to a broker. While technical support was holding  to the downside at about C$590 per tonne in the January contract, the  broker said the fund selling could accelerate if that chart point was  breached.
Scale-down end user demand did provide some support, tempering  the losses in canola, according to participants. A lack of farmer  selling also provided some support.
At 11:18 CST, about 8,600 canola contracts had changed hands with  intermonth spreading only a minor factor.
Milling wheat, durum, and barley futures were all untraded and  unchanged.
Prices in Canadian dollars per metric ton at 11:18 CST:Price      Change

Canola            Jan     592.00    dn  8.20

Mar     590.50    dn  7.50

May     588.00    dn  6.70

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

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