ICE Canada Grain/Oilseed Review: Firm Cash Lift Nearby Canola

Much of the support in the nearby contracts came from steady commercial buying, traders said. Much of that interest was said to be trying to pry some canola out of the hands of producers in order to cover nearby commitments, including sales to China as well as other export locations.

Domestic crusher demand was also evident and helped to underpin the nearby months.

Weakness in the Canadian dollar was also considered supportive for values.

Deferred canola values were undermined by the sell-off seen in CBOT soybean and soyoil futures as well as in the North American equity sector, brokers said. Losses in the energy markets also encouraged some downward price action.

Sentiment that carryover supplies of canola from the current crop year will be extremely burdensome helped to weigh on prices, traders said.

Commercials, commission houses and locals were some of the featured sellers during the day.

There were an estimated 9,755 canola contracts traded during Thursday’s session, down from 14,916 during the previous session. Of the contracts traded Thursday, 5,996 were spread related.

Western barley futures were little changed in virtually non-existent trade. The weakness in CBOT corn futures were an undermining price feature, brokers said. There were some concerns among market participants about the lack of volume in barley and that the contract may soon be removed if activity in the commodity does not pick up soon, traders said.

An estimated 50 barley contracts changed hands during the session. On Wednesday, 71 barley contracts were traded. Of the contracts traded Thursday, all 50 were spread related.