ICE Canada Review: Advancing Harvest Weighs On Canola

With warm, dry weather forecast across much of the Canadian Prairies over the next week, farmers should be making some good harvest progress. The advancing harvest was leading to an increase in farmer deliveries, and the resulting hedges were behind some of the weakness in canola, according to traders.

Declines in Chicago soybeans also spilled over to weigh on canola prices, said traders.

Fund long-liquidation weighed on canola as well, as speculators square up their positions ahead of the month end. Position evening ahead of Thursday’s USDA stocks report and Monday’s Statistics Canada production report was also a feature, said traders.

While the harvest is finally moving forward, there are still enough concerns about quality and the size of the crop to provide some support to canola, said traders. Solid exporter and domestic crusher demand also kept the market well supported.

About 20,563 contracts traded on Wednesday, which compares with Tuesday when an estimated 19,924 contracts changed hands. Spreading was a feature on Tuesday, accounting for at least half of the contracts traded.

Western barley futures were untraded and unchanged on Wednesday.

Settlement prices are in Canadian dollars per metric ton.