ICE Canola Up On Chart-Based Buying

The November canola contract moved above nearby chart resistance, at C$460 per metric ton, in overnight trade, helping encourage some additional speculative buying interest, according to traders.

Calls for a higher start in the CBOT soy complex were also providing some underlying support to canola.

In addition, there is still enough production uncertainty in western Canada to keep farmer selling largely to the sidelines. Concerns with the European rapeseed crop were also providing some underlying support to canola values, according to traders.

However, an analyst said most of the weather issues were already factored into the market, which may limit the need for any additional risk premiums in the canola market.

Sharp gains in the Canadian dollar relative to its US counterpart were also limiting the upside in canola, as the stronger currency cuts into crush margins and makes Canadian canola less attractive to export customers.

About 1,230 canola contracts had traded as of 8:50 CDT.

Western barley futures were untraded and unchanged.

Prices in Canadian dollars per metric ton at 8:50 CDT: