ICE Canada Review: Canola Posts Slight Gains, But Off Highs

Canola was stronger for most of the day, setting fresh contract highs at one point. Much of that strength was tied to the sharp gains in Chicago soyoil, according to traders.

Bullish chart signals added to the firmer tone in canola, as fund traders watching the technicals added to their long positions.

However, after moving higher for most of the past week, canola was due for some profit-taking amid ideas that the market was looking a little overbought, said traders.

Small amounts of farmer selling also weighed on values, although farmers were generally content to wait on the sidelines for the time-being in anticipation of continued strength in the market.

The Canadian dollar was trading near parity with its US counterpart on Friday, putting some downward pressure on canola values as well.

Some positioning ahead of next week’s USDA supply/demand reports was also a feature.

About 9,201 contracts traded on Friday, which compares with Thursday when an estimated 20,723 contracts changed hands. Spreading was only a small feature, accounting for 3,870 of the contracts traded.

Western barley futures were steady to higher, with five contracts traded on Friday.

Settlement prices are in Canadian dollars per metric ton.