ICE Canola Moves Lower On Profit-Taking

While canola initially moved higher in overnight trade, values were eventually pressured lower as over-bought technical signals encouraged some selling pressure, according to market participants.

The Canadian dollar also remained relatively strong Thursday morning, after climbing sharply relative to its US counterpart on Wednesday. A firmer Canadian dollar makes canola less attractive to both domestic crushers and exporters.

Weather concerns across western Canada remained a supportive influence, limiting the downside in canola. Wet weather was delaying harvest operations across much of the Canadian Prairies, leading to concerns about potential frost damage if the crops go un-harvested for too long.

CBOT soybeans were being called mixed to start the North American session, and the eventual direction that market takes could spill into canola, according to traders. Malaysian palm oil was mostly higher overnight.

About 1,300 canola contracts had traded as of 8:38 CDT.

Western barley futures were untraded and unchanged Thursday morning.

Prices in Canadian dollars per metric ton at 8:38 CDT: