Winnipeg, MB, Sept. 19, 2014

ICE Futures Canada canola contracts settled at fresh contract lows for the second straight session, dropping below the psychological C$400 mark in the most active November contract.

Speculators were noted sellers, as the big declines triggered a round of long liquidation from traders who had been betting that prices would rise. Other speculators were adding to the already large net short position, said participants.

Losses in the CBOT soy complex accounted for some of the spillover selling pressure in canola, as the US market braces itself for a record large soybean crop.

Improving weather conditions across Western Canada and expectations for mounting harvest pressure also weighed on canola.

However, a lack of significant farmer selling did help temper the declines. Scale-down end user demand and a weaker tone in the Canadian dollar were also somewhat supportive.

About 59,967 canola contracts were traded on Friday, which compares with Thursday when 30,181 contracts changed hands. Spreading was a feature, accounting for the majority of the volumes.

Milling wheat, durum, and barley were all untraded.

Settlement prices are in Canadian dollars per metric ton.

                          Price      Change
Canola            Nov     397.50    dn 8.90
                  Jan     404.50    dn 8.30
                  Mar     411.70    dn 7.20
Milling Wheat     Oct     191.00    unch
                  Dec     198.00    unch
Durum             Oct     303.20    unch
                  Dec     309.70    unch
Barley            Oct     123.50    unch
                  Dec     125.50    unch
     Spread trade prices are in Canadian dollars and the volume
represents the number of spreads:
Months        Prices                      Volume
Canola
Nov/Jan       7.10 under to 5.80 under    11,661
Nov/Mar       14.40 under to 12.30 under   2,074
Nov/May       20.40 under to 17.20 under     241
Nov/Jul       25.60 under to 21.20 under     233
Nov/Nov       20.00 under to 17.80           102
Jan/Mar       7.00 under to 5.90 under     6,930
Jan/May       13.10 under                      7
Jan/Jul       15.50 under                      3
Jan/Nov       12.00 under to 10.00 under     124
Mar/May       6.70 under to 4.90 under     3,998
Mar/Jul       11.70 under to 9.00 under       62
May/Jul       5.70 under to 4.00 under     3,784
May/Nov       0.70 under                       3
Jul/Nov       4.50 over to 6.10 over       1,318

Commodity News Service