Winnipeg, MB, Aug. 11, 2014

ICE Futures Canada canola contracts were weaker on Monday, closing near their session lows as losses in the CBOT soy complex spilled over to weigh on values.

Positioning ahead of Tuesday's USDA monthly supply/demand report was a feature in both soybeans and canola, with expectations for a record large US soybean crop weighing on the oilseeds, according to participants.

Chart-based selling contributed to the eventual losses in canola, with some stops hit on the way down. A firmer tone in the Canadian dollar was also bearish for canola.

Scale-down end user demand did provide some underlying support for canola. Uncertainty over the size of the Canadian crop, with dryness starting to cause concerns in some regions, was also supportive, said traders.

About 10,752 canola contracts were traded on Monday, which compares with Friday when 8,940 contracts changed hands. Spreading accounted for 1,918 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     438.30    dn 5.60
                  Jan     443.30    dn 5.80
                  Mar     445.00    dn 5.70
Milling Wheat     Oct     201.00    unch
                  Dec     206.00    unch
Durum             Oct     250.00    unch
                  Dec     256.00    unch
Barley            Oct     136.00    unch
                  Dec     138.00    unch
     Spread trade prices are in Canadian dollars and the volume
represents the number of spreads:
Months        Prices                      Volume
Canola
Nov/Jan       5.40 under to 4.80 under       516
Nov/Mar       7.10 under                       2
Jan/Mar       1.80 under to 1.50 under       160
Jan/Jul       4.30 over                        2
Mar/May       2.50 over to 2.90 over         211
May/Jul       2.90 over to 3.50 over          23
Jul/Nov       4.90 over to 6.00 over          45

Phil Franz-Warkentin, Commodity News Service

Copyright 2014 Commodity News Service Canada, Inc.