ICE Canada Grain/Oilseed Review: Canola Boosted By Vegoils

The total canola volume was heavy with intermonth spreading augmenting the activity.

The total canola volume was estimated at 19,801 contracts, up from Monday’s 7,921 contracts, including an estimated 11,920 contracts involved in the spread trade.

Canola was higher in the overnight trading session as sharp gains in Malaysian palm oil spilled in to lift canola. Canola extended its gains as the North American trading session got underway and Chicago Board of Trade soy complex values rallied. Canola ended the session with moderate gains.

Canola was lifted by the firm tone in the international vegetable oil markets as crush margins have improved. Also boosting canola was talk that China has picked up a cargo of canola for June shipment as exporters were pricing in the July contract. Friendly technical signals were also a supportive influence, analysts said. They noted that the May contract is challenging the Feb highs near C$437.00/metric ton.

Weighing on the market was the strong Canadian dollar and expectations for good farmer selling in coming days as they continue to hold large supplies of canola.

Crushers were strong buyers with exporter pricing also evident. Commodity funds were noted buying in the July contract early in the day. The selling was mainly commercial with farmer selling felt to be steady as farm gate prices have returned to the $9.50/bu level on the western side of the prairies, cash dealers said.

Western barley ended higher in a light commercial trade with intermonth spreading accounting for much of the volume. The lack of farmer selling, as planting is beginning in southern Alberta, gave support, but was offset by lackluster end user demand and a softer tone in the cash market, brokers said.

The total barley volume was estimated at 210 contracts, up from 50 contracts on Monday, including an estimated 176 contracts involved in the spread trade.

Prices are in Canadian dollars per metric ton: