ICE Canada Grain/Oilseed Rev: Exporters Lift Canola

Contributing to some of the upward price action was chart based speculative buying.

The slow pace of farmer deliveries into the cash pipeline continued to provide some support for canola as did steady buying from the export sector, brokers said.

There were reports of fresh export business being put on the books, but confirmation was lacking. Most of the buying from the export sector was said to be the pricing of old sales to Japan and Mexico, traders said.

The need of elevator companies to cover a heavy export program from Canada’s West Coast during the October to end of December time frame, also provided good support, brokers said.

Ongoing harvest delays in western Canada was also an underpinning price influence.

The upside in canola was limited by profit-taking as well as by the lack of fresh domestic crusher demand. The losses seen in CBOT soybeans and soyoil futures also tempered the advances in canola.

Spreading of the November/January contracts was a feature of the activity and helped to bolster the volume total.

There were an estimated 20,463 canola contracts traded during Tuesday’s trade, up from 13,033 during the previous session.

Western barley futures had traded at mainly higher levels for most of the session before turning mainly lower at the close. Only the nearby Nov contract managed to close with gains. Some support had been associated with light commercial demand, traders said. Declines in CBOT corn futures and a drop off in demand near the close, helped to undermine barley values, brokers said.

An estimated 210 barley contracts changed hands during the session. On Monday, 153 barley contracts were traded.