ICE Canada Canola Moves Lower Following Outside Markets

A Winnipeg broker said canola was largely a follower on Monday, with losses in CBOT soybeans and soyoil spilling over to weigh on the market. Sharp declines in crude oil and the outside equity markets also accounted for some of the weakness in canola, as "the grains are tied in with everything else today," according to the broker.

The declines in canola were much more subdued compared to the soy complex. Nearby export demand helped support the front months in canola, limiting the downside, said the broker. He said minor weather concerns with the South American crop were also supportive.

Sharp weakness in the Canadian dollar also helped underpin the canola market, according to traders. In addition, canola never moved up to the same extent as soybeans to begin with.

Traders were looking ahead to Friday’s Statistics Canada planting intentions report, which will give some sign as to what producers plan on seeding this spring.

About 5,700 canola contracts had traded by 10:55 CDT. The May/July spread accounted for a sizeable portion of the activity as participants look to roll out of the nearby month.

Western barley futures were steady to lower in thin trade. Only ten contracts had traded by midsession, with intermonth spreading the feature.

Prices in Canadian dollars per metric ton at 10:55 CDT: