ICE Canada Review: Canola Ends Up, Export Demand Supportive

Speculators were some of the featured buyers in the canola market on Thursday, as Wednesday’s move lower encouraged some fresh fund buying, said traders. End-users were also in the market, with talk that China was pricing some fresh business.

The Canadian dollar was down by three quarters of a cent relative to its US counterpart, adding to the firmer tone in canola. A weaker currency helps improve crush margins and also makes canola more attractive to export customers.

The upside was limited by the fact that farmers across western Canada continue to make good harvest progress. Much of that canola is being taken off in tough and damp condition, given the wet weather earlier in the growing season, and producers are making deliveries off the combine rather than store it themselves, said traders.

Some evening up of positions ahead of the updated USDA supply/demand tables due out on Friday was noted in canola. Participants in the Canadian market were also looking ahead to Monday’s closure for Thanksgiving.

About 23,162 contracts traded on Thursday, which compares with Wednesday when an estimated 12,221 contracts changed hands. Spreading was a feature of the day’s trade, accounting for a large portion of the trade volumes.

Western barley futures were untraded and unchanged on Thursday.

Settlement prices are in Canadian dollars per metric ton.