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ICE Canola Down With Spec Selling

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Published: December 4, 2012

By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 4, 2012
Winnipeg – Canola contracts on the ICE Futures  Canada platform were weaker at 10:49 CST Tuesday, seeing some  follow-through speculative selling from Monday’s lower close.
General speculative selling in most outside markets, including  the CBOT soy complex contributed to the softer tone in canola,  according to a broker. The liquidation of long canola, short soybean  spreads was also said to be weighing on canola prices.

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Statistics Canada releases updated production estimates on  Wednesday, December 5. Positioning ahead of the report was a feature,  as opinions are divided as to whether the canola number will be revised  higher or lower in the latest estimate.
Canola did lose ground to soybeans on Monday, which was making  the oilseed look a little more attractive to end use customers, said  a broker. He said scale down exporter pricing, along with a lack of  significant farmer selling, was helping to provide some underlying  support.
Heavy rains in Argentina overnight were another supportive  factor, as the moisture will cause more planting delays for the  soybean crop in the country, said a broker.
At 10:49 CST, about 7,000 canola contracts had changed hands with  intermonth spreading a feature of the activity.
Milling wheat, durum, and barley futures were all untraded and  unchanged.
Prices in Canadian dollars per metric ton at 10:49 CST:Price      Change

Canola            Jan     587.00    dn  4.90

Mar     586.30    dn  5.20

May     585.10    dn  5.70

Milling Wheat     Dec     300.60      unch

Mar     308.60      unch

Durum             Dec     312.00      unch

Mar     316.00      unch

Barley            Dec     245.00      unch

Mar     248.00      unch

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