ICE Canola Down, Lacking Follow-Through Demand

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Published: November 20, 2012

By Phil Franz-Warkentin, Commodity News Service Canada
Nov. 20, 2012
Winnipeg – ICE Canada canola futures were weaker  Tuesday morning, as the market failed to see any follow-through buying  interest on Monday’s firmer close.
Losses in CBOT soybeans, which were brought on by improving South  American crop prospects, provided the catalyst for the downturn in  canola, according to traders.

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The overall technical trend also remains pointed lower in  canola, according to analysts. As a result, any attempts at taking  prices higher were seen as good selling opportunities.
Tightening Canadian canola supplies and the need to ration  demand going forward did provide some underlying support, said  traders.
Participants cautioned that activity in the grain and oilseed  markets could turn choppy, as US traders move to the sidelines and  square positions ahead of that country’s Thanksgiving holiday.
About 1,600 canola contracts had traded as of 8:40 CST.
Milling wheat, durum, and barley futures were all untraded and  unchanged Tuesday morning.
Prices in Canadian dollars per metric ton at 8:40 CST:Price      Change

Canola            Jan     577.60    dn  2.40

Mar     574.00    dn  3.40

May     573.00    dn  3.20

Milling Wheat     Dec     300.20    unch

Mar     309.70    unch

Durum             Dec     311.90    unch

Mar     318.50    unch

Barley            Dec     250.00    unch

Mar     253.00    unch

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