ICE Canola Contracts Follow Outside Commodities Up

"The broad based rally in the commodity markets, particularly wheat, essentially took canola for an upward price ride," a trader said.

Steady domestic crusher demand was a supportive price influence for canola as well. Additional support in canola was also linked to exporters preparing for the fall shipping program, brokers said.

The advances in canola were amplified early in the session by the triggering of buy-stops on the way up, traders said.

While hedge offers from grain companies continue to hit canola futures, the level of farmer deliveries has begun to slow, helping to generate some underlying support.

"All the producers who were going to sell canola when the cash price hit C$10.00 a bushel, have now done so," an analyst said. "The producers are now going to wait for the next upward price plateau to be reached before delivering additional quantities."

Commodity funds were also featured buyers of canola early in the day, traders said.

Canola futures had rallied as much as C$11.00 to C$12.00 per metric ton early in the session, but at those levels, profit-taking surfaced and the gains were eased.

Spreading was a small feature of the activity and contributed to the volume total.

There were an estimated 5,919 canola contracts traded at 10:32 CDT.

There were no western barley futures traded as of 10:32 CDT.