ICE Canada Canola Mostly Higher, Weather Concerns Supportive

"Most of the markets that would influence prices, including the financial and currency markets, are jumbled and choppy with no powerful forces at work," said a Winnipeg broker accounting for the lack of clear direction in canola.

He said weakness in the Canadian dollar, along with gains in CBOT soyoil and soymeal, provided some support for canola.

Ongoing weather concerns in western Canada were also seen as supportive, although the broker thought most participants were "playing wait and see" when it comes to production prospects. He estimated that about 40% of the western Canadian canola crops were in good shape, with the remaining 60% poor to fair.

"It’s too early for anyone to start panicking and pushing it higher," said the broker.

About 4,300 canola contracts had traded by 11:05 CDT, with inter-month spreading a minor feature. A trader said the spread trade was slowing down, as the funds have all finished moving their positions into the November contract.

Western barley futures were steady to lower at midsession, with losses in CBOT corn accounting for some of the selling pressure. There were 49 barley contracts traded by midsession, all of that in the newly revised November futures.

Open interest in the old barley contracts is still sitting above 2,000. The broker thought participants still holding positions in the former contracts would eventually be looking to quietly move those positions into the revised contracts.

Prices in Canadian dollars per metric ton at 11:05 CDT: