ICE Canada Review: Fund Selling Drops Canola Values

Sharp losses in the US soy complex added to the bearish tone of the market, as soybeans saw plenty of fund selling throughout the session as well, market watchers said.

The Canadian dollar was another factor putting prices on the defensive, as Canada’s currency had eclipsed the 101 US cent level, and was about three quarters of a cent stronger versus the US dollar on Friday, brokers said.

Experts said any potential export business was being deflected away with Canada’s stronger currency.

Losses were tempered by overnight gains in both the Malaysian palm oil and European rapeseed markets, analysts said.

Another factor limiting declines was concerns producers in western Canada will not plant enough acres this spring to meet the demands of end-users, brokers said.

About 24,142 contracts were traded on Friday, which compares with Thursday, when an estimated 17,358 contracts changed hands. Spreading accounted for about 16,760 of the contracts traded.

There was a total of ten Western barley futures traded in the October contract on Friday, with the contract closing C$10/per ton higher.

Settlement prices are in Canadian dollars per metric ton.