ICE Canola Narrowly Mixed, Traders Watching Weather

Traders said forecasts calling for more favourable harvest weather across western Canada later this week were putting some downward pressure on values. Overbought price sentiment was also said to be weighing on canola prices, after the market failed to hold onto the fresh contract highs hit on Monday.

While the weather is looking better for the canola harvest, there are still enough concerns about downgrades and yield reductions due to the recent cool, wet conditions, to underpin the market, according to traders.

CBOT soybeans were being called slightly higher to start the North American session, which could spill-over to support canola. However, traders noted that soybeans could easily turn lower and the actual direction taken in the US would likely influence the canola market as well. Malaysian palm oil and European rapeseed futures were both slightly weaker overnight.

The Canadian dollar was slightly weaker Tuesday morning, although the trade in the currency was on the quiet side as participants await the US interest rate announcement due out later in the day.

About 850 canola contracts had traded as of 8:40 CDT.

Western barley futures were untraded and unchanged Tuesday morning.

Prices in Canadian dollars per metric ton at 8:40 CDT: