ICE Canada Grain/Oilseed Rev: Harvest Undermines Canola

Canola saw a moderate trade with intermonth spread activity accounting for much of the volume.

The total canola volume was estimated at 11,073 contracts, up from Friday’s 11,058 contracts, including an estimated 6,994 contracts involved in the spread trade.

Canola was lower in the overnight market, pressured down by weakness in international vegetable oil prices and the advancing harvest in western Canada. canola continued to see losses as the North American trading session opened and the Chicago Board of Trade soy complex opened lower. Canola maintained declines as the US soy market turned higher with canola ending the session with small losses.

Canola was pressured down by seasonal harvest pressure with the advancing harvest of a larger than expected crop weighing on values. A weak tone in CBOT soyoil contributed to the losses as did the firm Canadian dollar. Bearish technical signals triggered some speculative selling

Farmer selling was strong with weekend movement stronger than cash dealers had expected. Traders noted that cash pipeline supplies are building. On Friday, the Canadian Grain Commission reported that canola supplies in commercial hands in the week ended Sept 27 were 958,300 metric tons, down only modestly from last year’s 1.07 mln tonnes, but well above 742,400 tons the previous week.

Canola drew some support from ideas the market was oversold and due for a rebound and early gains in CBOT soybean futures, analysts said. There was steady export demand, thought to be pricing routine exports.

Exporter and crusher buying met elevator company and speculative selling, said brokers.

Western barley was unchanged and very lightly traded as the firm tone in CBOT corn and slow farmer selling was balanced off by only lackluster demand, brokers said.

The total barley volume was estimated at 1 contract, down from 12 contracts on Friday.