Winnipeg, MB, Nov. 12, 2014

ICE Futures Canada canola contracts moved lower on Wednesday, backing away from earlier advances. The biggest declines were in the nearby January contract, as the premiums that had been built into the front month eroded and it moved back below the more deferred positions.

Canola started the day posting solid gains, moving up by as much as nine dollars per tonne in the most active January contract as the market played 'catch-up' with the US soy complex that had rallied sharply when ICE Canada was closed Tuesday for Remembrance Day. While soybeans initially saw some follow-through strength on Wednesday, the Chicago futures eventually turned lower and canola followed suit, said traders.

A stronger tone in the Canadian dollar contributed to the eventual weakness in canola, said participants.

Some light farmer selling was also noted, although producers remain on the sidelines for the time being.

Good exporter and domestic crusher demand on a scale-down basis did provide some underlying support. The nearby technical bias also still remains pointed higher for canola, making any losses a good buying opportunity from a chart standpoint, according to analysts.

About 25,823 canola contracts were traded on Wednesday, which compares with Monday when 13,081 contracts changed hands. Spreading accounted for about 15,090 of the contracts traded.

Milling wheat and durum were both untraded, while barley moved higher with 25 contracts traded.

Settlement prices are in Canadian dollars per metric ton.

                          Price      Change
Canola            Jan     429.60    dn 7.00
                  Mar     430.50    dn 4.80
                  May     430.90    dn 3.50
Milling Wheat     Dec     219.00    unch
                  Mar     226.00    unch
Durum             Dec     356.50    unch
                  Mar     357.50    unch
Barley            Dec     158.00    up 3.00
                  Mar     159.00    unch
    Spread trade prices are in Canadian dollars and the volume
represents the number of spreads:
Months        Prices                      Volume
Canola
Jan/Mar       1.60 under to 2.40 over       4595
Jan/May       1.90 under to 2.40 over        424
Jan/Jul       1.90 under to 2.70 over        411
Jan/Nov       4.40 over to 4.50 over           4
Mar/May       0.90 under to 1.30 over        753
Mar/Jul       0.50 under to 1.90 over         22
May/Jul       2.50 under to 1.40 over        967
May/Nov       2.40 over                        1
Jul/Nov       2.40 over to 9.00 over         363
Nov/Jan       6.60 under                       5

Commodity News Service