ICE Canola Lower with Profit Taking

E-CBOT Soyoil futures prices were lower, as was Malaysian palm oil, setting back canola prices in early trade, market watchers said.

Overbought market conditions also limited the upside in canola, experts said.

The Canadian dollar was trading about one quarter of a cent stronger early Tuesday, furthering the market’s losses, brokers said.

Declines were limited by continued strong demand from exporters, including China, Mexico, Japan, and Pakistan. The Canadian Grain Commision reported canola exports during the 2010/11 (Aug/Jul) crop year to date were 2.625 million tonnes, up slightly from 2.563 million at the same point the previous year.

Should the strong demand continue, Canada’s canola stocks are likely to be tight at the end of the year, which should provide a firm base for prices, analysts said.

E-CBOT Soybean values were slightly higher, as were prices for European rapeseed, helping restrict losses in the market, experts said.

The higher calls for CBOT soybeans with the start of the North American trading session helped to restrict the weakness, market watchers said.

Prices in Canadian dollars per metric ton at 08:30 CST: