ICE Canada Grain/Oilseed Review: Canola Mixed, Profits vs Cash

Position evening ahead of the weekend was a feature of the activity.

Trade in canola was volatile, with it only taking a small amount of buying or selling during the session to push prices one way or the other, brokers said.

Support in canola came from steady commercial demand, most of which was believed to be covering fresh export demand to China, traders said. The reluctance of producers to deliver into the commercial pipeline has only served to bolster the strength in the cash market.

Steady domestic crusher demand and the pricing of old business to Mexico and Japan also offered some underlying support for canola.

The price firmness in canola was also associated with the price gains posted in CBOT soybean and soyoil values. Gains overnight in Malaysian palm oil prices had generated some early strength in canola, brokers said.

The upside in canola, however, was limited by profit-taking by a variety of outlets and by some late day hedge selling by line companies, traders said. Sentiment that the nearby canola contracts were overbought and were in need of a downward correction also took values off their highs.

A slightly firmer Canadian dollar was only seen as a small undermining price influence. Continued uncertainty regarding the global economy also prompted some light selling during the session.

There were an estimated 13,539 canola contracts traded during Friday’s session, up from 9,755 during the previous session. Of the contracts traded Friday, 7,222 were spread related.

Western barley futures were little changed only some minor inter-month spreading between commercials the only feature of the activity, traders said.

An estimated 28 barley contracts changed hands during the session. On Thursday, 50 barley contracts were traded. Of the contracts traded Friday, all 28 were spread related.