DJ ICE Canada Review: Nearby Canola Down, Deferreds Up 10.08.2011
WINNIPEG (Dow Jones)--Canola contracts on the ICE Futures Canada trading platform finished Tuesday's session mixed with the nearby contracts down, and most of the deferred values steady to higher. Much of the selling was linked to bearish chart signals and the losses exhibited by the outside oilseed markets, industry watchers said.
Canola futures moved to both sides of the plus/minus line during the day with it not taking much buying or selling to move values either up or down, traders said.
Declines in canola were fueled by the losses seen overnight in Malaysian palm oil and European rapeseed futures. The downward price action seen in CBOT soybean and soyoil values contributed to the bearish price sentiment, brokers said.
Steady elevator company hedge selling, as producers continue to be good sellers of canola into the cash market, helped to undermine values. Good weather for the development of canola in western Canada contributed to the price weakness.
The late-day upturn in the value of the Canadian dollar also worked against canola values.
Some of the support seen in canola during the session came from sentiment that values were oversold and that prices were in need of an upward correction. The buying back of previously sold positions by a variety of market players also helped to spark some buying during the day, traders said.
Steady domestic processor demand and the pricing of old export business by commercials also provided some underlying support for canola. Some minor support was also tied to talk of fresh export business being put on the books for canola, but the upside was limited by the lack of confirmation from export outlets, brokers said.
There were an estimated 13,486 canola contracts traded Tuesday, down from the 18,496 contracts that changed hands during the previous session. Of the contracts traded, 8,394 were spread related.
Western barley futures were unchanged and untraded Tuesday.
Prices are in Canadian dollars per metric ton.
Settlement Prices Change Canola Nov 541.30 dn 1.60 Jan 549.50 dn 1.30 Mar 554.40 dn 0.60 Western Barley Oct 205.00 unchanged Dec 205.00 unchanged Spread trade prices are in Cdn dollars and the volume represents the number of spreads: Months Prices Volume Canola Nov/Jan 8.30 under to 7.80 under 2,463 Nov/Mar 13.50 under to 11.50 under 315 Nov/May 17.50 under to 15.80 under 13 Nov/Jul 17.60 under 2 Jan/Mar 5.30 under to 3.60 under 676 Jan/May 9.60 under to 6.50 under 7 Jan/Jul 9.70 under 1 Mar/May 4.00 under to 2.10 under 602 Mar/Jul 5.50 under 10 May/Jul 3.40 under to 1.40 under 98 Jan/Nov 29.80 over 10