ICE Canada Grain/Oilseed Review: Canola Falls On Weak US Soy

WINNIPEG (Dow Jones)--Grain and oilseed futures at ICE Futures Canada closed Wednesday's session lower as canola was pressured by weakness in the U.S. soy market over the past two sessions, brokers said.

Canola saw a moderate trade, with only small intermonth spreading evident.

The total canola volume was estimated at 6,163 contracts, down from Monday's 6,213 contracts, including an estimated 1,528 contracts involved in the spread trade.

Canola was lower in the overnight session as the market caught up to declines in Chicago Board of Trade soy complex futures on Tuesday when the ICE Futures market was closed for a holiday. Wednesday's weakness in U.S. soy markets contributed to the weak tone in canola with prices ending moderately lower.

Canola was also pressured by the losses in the outside markets including crude oil and equities. The record-large canola supply weighed on values as well. However, canola did draw support from the weak Canadian dollar, export pricing and firmness in cash markets.

Exporters confirmed that some of the pricing was for non-routine sales, with most export pricing attracted in near C$425 per metric ton in the January futures.

Crushers and exporters were the best buyers, with commercial and commission house selling noted. Elevator company selling was heavier as cash dealers confirmed that elevator companies have placed premiums on deliveries in order to attract increased farmer selling.

Western barley ended lower in reaction to the two days of declines in CBOT corn futures. Trade was light and commercially dominated. End-user buying met mainly elevator company pricing.

The total barley volume was estimated at 321 contracts, down from 567 contracts on Monday, including an estimated 150 contracts involved in the spread trade.

 
   Prices are in Canadian dollars per metric ton: 
 
          Price   Change 
  Canola 
Jan     422.50      dn 9.90 
Mar     432.00      dn 9.80 
May     441.40      dn 10.00 
  Western Barley 
Dec      165.10     dn 3.30 
Mar     173.10      dn 3.90 
 

Spread trade prices are in Canadian dollars and the volume represents the number of spreads:

 
   Months         Prices              Volume 
Canola 
   Jan/Mar        9.20-9.60           244 
   Jan/May        18.40-19.30         25 
   Jan/Jul        28.80-29.00         272 
   Jan/Nov        unavailable         1 
   Mar/May        9.20-9.60           172 
   Mar/Jul        unavailable         1 
   May/Jul        9.00-9.70           49 
Barley 
   Dec/Mar        8.00-9.10           75 
 

-By Don Bousquet; contributing to Dow Jones Newswires; 204-947-1700 resnews@shawbiz.ca

(END) Dow Jones Newswires

November 12, 2008 15:03 ET (20:03 GMT)


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