Winnipeg, MB, Sept. 15, 2014

ICE Futures Canada canola contracts were stronger on Monday, as a rally in CBOT soyoil provided some underlying support for the Canadian futures.

Soyoil jumped sharply on Friday, but canola lagged to the upside at that time. With soyoil posting big advances again Monday, canola was pulled higher as well, said analysts.

However, the gains in canola were not as pronounced as seen in soyoil. Ongoing uncertainty over the size and quality of the Prairie canola crop kept some caution in the Canadian market, said participants.

While cold and wet conditions caused harvest delays last week, the extent of the damage is unknown and many participants remain of the opinion that actual canola production will still end up above earlier projections.

Nearby forecasts look more favourable across Western Canada, and traders will be watching yield reports closely as the harvest advances.

Bearish technical signals did temper the advances, with any strength seen as a selling opportunity from a chart-standpoint, according to traders.

About 13,338 canola contracts were traded on Monday, which compares with Friday when 13,023 contracts changed hands. Spreading accounted for 9,804 of the contracts traded.

Milling wheat, durum, and barley were all untraded.

Settlement prices are in Canadian dollars per metric ton.

                          Price      Change
Canola            Nov     416.00    up 2.30
                  Jan     420.40    up 2.40
                  Mar     426.30    up 2.80
Milling Wheat     Oct     189.00    unch
                  Dec     196.00    unch
Durum             Oct     288.80    unch
                  Dec     294.80    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       4.80 under to 4.10 under     2,515
Nov/Mar       10.40 under to 9.70 under      157
Nov/May       14.30 under to 13.10 under      33
Nov/Jul       17.00 under to 16.50 under      11
Nov/Nov       9.00 under to 8.00 under        51
Jan/Mar       5.90 under to 5.30 under     1,010
Jan/May       9.40 under to 9.00 under         6
Jan/Nov       4.60 under to 4.50 under        12
Mar/May       4.10 under to 3.60 under       395
Mar/Jul       7.00 under to 6.90 under        28
May/Jul       3.50 under to 3.20 under       318
May/Nov       4.30 over to 5.10 over           4
Jul/Nov       6.10 over to 8.40 over         362

Commodity News Service