Winnipeg, MB, July 18, 2014

ICE Futures Canada canola contracts dropped sharply lower on Friday, as losses in outside oilseed markets and ideas that recent gains were overdone weighed on prices ahead of the weekend.

Declines in the European rapeseed market put some spillover pressure on canola, while a turn lower in CBOT soybeans following early gains was also bearish, according to participants. Speculators were some of the noted sellers, adding to their short positions as the nearby chart signals remain bearish.

Light farmer selling was said to be coming forward on Friday, although most producers are still on the sidelines waiting to get a firmer sense on the size of this years crop.

Improving weather conditions in some parts of Western Canada weighed on values as well, but there were also still more than enough areas of concern to provide some underlying support.

Gains in CBOT soyoil also helped temper the declines.

About 17,011 canola contracts were traded on Friday, which compares with Thursday when 14,625 contracts changed hands. Spreading accounted for 10,074 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     443.30    dn 7.30
                  Jan     446.80    dn 6.60
                  Mar     446.40    dn 7.40
Milling Wheat     Oct     191.00    unch
                  Dec     196.00    unch
Durum             Oct     250.00    unch
                  Dec     256.00    unch
Barley            Oct     137.50    unch
                  Dec     139.50    unch
     Spread trade prices are in Canadian dollars and the volume
represents the number of spreads:
Months        Prices                      Volume
Canola
Nov/Jan       3.80 under to 2.80 under     1,859
Nov/Mar       3.90 under to 3.00 under       187
Nov/May       0.30 over to 1.30 over          29
Nov/Jul       3.00 over to 4.50 over          38
Jan/Mar       0.60 under to 0.90 over      1,079
Jan/May       2.60 over to 4.40 over         250
Jan/Nov       16.20 over                     169
Mar/May       3.10 over to 4.70 over       1,177
Jul/Nov       9.00 over to 11.90 over        249

Commodity News Service