ICE Canada Review: Canola Higher, Export Demand Supportive

China was said to be in the canola market pricing some fresh business, helping canola move higher despite the generally weaker tone in the Chicago soy complex, according to a broker. Routine Japanese pricing was also providing some support.

Domestic crushers were also on the buy side, given the improvement in crush margins over the past month. Some speculative buying interest, encouraged by the move higher, added to the gains in canola, according to traders.

Harvest delays in parts of western Canada were also providing some underlying support to prices, as only light farmer hedges were coming forward. However, selling on scale-up basis was noted as prices moved higher.

The weakness in soyoil, and overnight losses in Malaysian palm oil tempered the upside in canola.

About 16,354 contracts traded on Wednesday, which compares with Tuesday when an estimated 15,800 contracts traded. Spreading was only a minor feature during the day.

Western barley futures actually saw some activity on Wednesday, moving higher with 35 contracts traded in the nearby October contract. Some of that demand was tied to the strength in the international feed barley markets, due to crop problems in the former Soviet Union, and recent reports from the Canadian Wheat Board indicating that Canada was making feed barley export sales, according to traders. Over the past year, Canadian feed barley exports have been virtually non-existent due to higher domestic values.

Settlement prices are in Canadian dollars per metric ton.