ICE Canola Weakens On Farmer Hedges, Spec Selling

Canola had initially managed to post some small gains in overnight activity in a correction off of Monday’s declines. However, a trader said volumes in the bounce were light, and increasing farmer selling came forward to weigh on values. He noted that while there is still some production uncertainty, as the crops get farther along in western Canada farmers are making more deliveries of their old crop supplies.

The trader said speculative long-liquidation also returned to weigh on the canola market, with the losses in CBOT soyoil likely encouraging some of that speculative selling. He added that, from a chart perspective, the highs in canola may be in for the time being, which could lead to some range-bound trade in the short-term.

Scale down exporter and domestic crusher pricing provided some support for canola, according to traders. A slightly weaker tone in the Canadian dollar was also helping underpin the futures.

At 10:32 CDT, about 5,500 canola contracts had changed hands, with intermonth spreading only a small feature.

Western barley futures were untraded and unchanged.

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