ICE Canola Narrowly Mixed with Fund Activity

Strong reports of soy crops in both Brazil and Argentina provided downward momentum, as Brazil has reported an above average crop for the current crop year. Dry conditions in South America early in 2011 had worried the market, brokers said.

Overnight losses in both European rapeseed and Malaysian palm oil added to bearish tone of the market, experts said. Early declines in CBOT soybeans also weighed on values, although soybeans recovered to post small advances in most months by midsession.

Supporting values was a decline in the value of the Canadian dollar, market watchers said. Canada’s currency was about at tenth of cent weaker at 10:40 CST Monday.

Also supportive to the market was the ongoing demand from domestic crushers, as well as the pricing of old export business to Japan, analysts said.

Worries about how acreage and soil conditions this spring were other factors underpinning the market, brokers said.

At 10:40 CST, there had been about 15,700 canola contracts traded, with about 12,632 of those tied to spreading.

Western barley futures were unchanged and untraded at midsession.

Prices in Canadian dollars per metric ton at 10:45 CST: