ICE Canada Canola Strengthens On Weather Concerns

Ongoing weather concerns in western Canada, highlighted by an Alberta Agriculture report showing that moisture levels were poor in nearly half of the province, provided some support for canola, according to traders. However, crops in other areas have seen beneficial moisture recently which should temper some of the weather concerns.

While the gains in CBOT soybeans were also supportive, a canola broker noted that the losses in soyoil were limiting the upside in canola.

The firmer tone in the Canadian dollar also put some pressure on canola, according to the broker.

About 5,300 canola contracts had traded by 11:08 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 the losses in CBOT corn accounting for some of the selling pressure. However, expectations for a smaller crop provided some support. There were 131 barley contracts traded by midsession, all of that in the newly revised November futures.

Prices in Canadian dollars per metric ton at 11:08 CDT: