ICE Canola Down As Farmer Hedges Weigh

"The farmers are taking advantage of the higher prices and are actively selling into the strength," said a market analyst. He said that selling pressure was only being met by routine exporter and domestic crusher pricing, keeping the path of least resistance to the downside on Friday.

"On the demand side, it’s pretty quiet," said the analyst.

However, a slightly firmer tone in the CBOT soy complex provided some underlying support to canola, according to traders.

The ongoing production uncertainty in western was also a supportive factor, with the adverse conditions for European and Ukrainian crops also still being digested by the market, according to the analyst.

From a technical standpoint, while there was some profit-taking in the market on Friday, the trend remains pointed higher in canola, according to the analyst. He said the recent patterns on the charts were pointing to a couple of days of consolidation, as buying backs away from the market, before the market will continue higher sometime in the next week.

At 10:32 CDT, about 3,400 canola contracts had changed hands.

Western barley futures were untraded and unchanged.

Prices in Canadian dollars per metric ton at 10:32 CDT: