ICE Canada Review: Canola Edges Lower On Profit-Taking

After posting large gains over the past week, the canola market was due for a profit-taking correction, according to a broker who said some light some speculative selling came forward to weigh on values Friday.

Farmer hedges, encouraged by strong cash bids in the countryside, added to the weaker tone in the market, according to the broker.

However, the weather concerns, both for Canada’s canola crop and also for the European rapeseed crop, remained supportive overall, according to traders.

Commercial buying was also evident, helping keep canola within a tight range.

Sharp declines in the Canadian dollar, which was down by more than a cent relative to its US counterpart, provided some underlying support for canola, according to traders. A weaker currency helps improve crush margins and makes canola more attractive to export customers.

Western barley futures were untraded and unchanged on Friday.

About 9,382 contracts traded on Friday, which compares with Thursday when an estimated 14,739 contracts traded. Spreading accounted for about 1,650 of the contracts traded.

Western barley futures were untraded and unchanged on Thursday.

Prices are in Canadian dollars per metric ton. Settlement