ICE Canada Review: Canola Climbs Higher Following Corn, Soy

The catalyst for the jump higher in canola came from the updated USDA supply/demand tables released Wednesday morning. The report was particularly bullish for corn, and was seen as highlighting the tight stocks situation in most of the major North American grains and oilseeds, according to a trader. With corn, soybeans, and wheat all posting large gains, canola had little choice but to follow suit, he added.

Exporters and domestic crushers remain some of the featured buyers in canola, given the favorable crush margins and the steady export pace, said market participants.

Speculators were on both sides of the market. While some profit-taking did limit the upside in canola, any selling pressure was met by firm demand and the eventual move to fresh highs likely triggered some buy-stops, according to traders.

Scale-up farmer selling did temper the advances in canola, but many producers continue to hold out for higher prices still, said an analyst.

About 24,528 contracts were traded on Wednesday, which compares with Tuesday when an estimated 22,859 contracts changed hands. Spreading accounted for about 17,112 of the contracts traded.

Western barley futures were untraded and unchanged.

Settlement prices are in Canadian dollars per metric ton.