Canola Firm In Featureless Trade

Canola trade was light to moderate with intermonth spreading accounting for much of the volume. Activity was described as lackluster and featureless with only routine commercial participation
noted.

The total canola volume was estimated at 10,614 contracts, down from Tuesday’s 15,634 contracts, including an estimated 7,852 contracts involved in the spread trade.

Canola was a bit higher in the overnight market as gains in international vegetable oil prices gave support. Canola held onto its gains as the North American trading session opened and the Chicago Board of Trade soy complex rallied. Canola ended the day with small gains.

Canola drew support from the firm tone in old crop soybeans with much of the strength reflecting the lack of farmer selling. Steady commercial demand gave support with good levels of crusher buying residing under the market as crush margins remain favorable in the wake of the strength in international palm oil prices. Friendly technical signals were only mildly supportive as speculative buying was small.

Traders are looking forward to Friday’s Statistics Canada acreage report with most expecting to see Canadian acres modestly higher than 2008’s record 16.1 mln.

Weighing on the market were ideas that heavy farmer pricing resides about C$5.00-$6.00 per metric ton above current market values.

Exporter and crusher buying met commercial selling with elevator company selling described as light and steady.

Western barley posted gains in light trade.
Commercials were the only traders in the small activity. They noted that while the market was supported by slow farmer selling, the low level of activity suggested that price movement was not significant.

The total barley volume was estimated at 53 contracts, down from 477 contracts on Tuesday, including an estimated 20 contracts involved in the spread trade.

Prices are in Canadian dollars per metric ton: