ICE Canola Higher Following USDA Report

The government agency reported 2010/11 corn stocks in the US will be 70 million bushels lower than originally predicted. There were no surprises in soybean supplies.

Overnight gains in e-CBOT soybeans, Malaysian palm oil, and European rapeseed helped to provide a firm price floor for canola values, market watchers said.

Also underpinning values were fears that strong wheat prices will persuade producers to plant that grain in the spring, as opposed to canola, brokers said.

Advances were limited by the Canadian dollar which was about a fifth of a cent stronger in early trade, analysts said.

Light farmer hedges and profit taking was also tempering the upside, experts said. However, aside from those growers with nearby cash flow needs, most producers continue to hold out for the possibility of seeing higher prices down the road.

At 08:35 CST, there had been about 3,500 canola contracts traded.

Western barley futures were unchanged and untraded early Wednesday.

Prices in Canadian dollars per metric ton at 08:35 CST: