ICE Canola Up, Following Soybeans

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By Terryn Shiells, Commodity News Service Canada

October 22, 2012

WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at stronger price levels at 8:33 CDT Monday, following the advances seen in the CBOT soybean complex, analysts said.

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Much of the buying that took soybeans higher was linked to a post harvest rally and firmness in the cash market, participants said.
Advances seen in Malaysian palm oil and European rapeseed futures overnight also helped to boost canola values on Monday morning.
Continued concerns about the tight supply situation, as Agriculture Canada lowered its ending stocks projection for the 2012/13 (Aug/Jul) year to 450,000 tonnes, from September’s 675,000 tonne projection. Anything less than 1 million tonnes is normally considered tight.
The downswing in the value of the Canadian dollar also helped boost canola values, as it made the commodity more attractive to foreign buyers.
However, generally good conditions for the development of South America’s soybean crop limited the advances in canola, traders said.
As of 8:33 CDT, about 5,850 canola contracts had traded.

Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:33 CDT:

		Price	Change
Canola
	Nov	618.00	up 6.10 Jan 619.10 up 8.50 Mar 617.40 up 8.40 Milling Wheat Dec 304.60 unch Mar 314.20 unch Durum Dec 312.40 unch Mar 319.00 unch Barley Dec 250.00 unch Mar 253.00 unch