ICE Canada Review: Canola Climbs On Weak Cdn Dollar

Spreading was a feature of the activity in canola and contributed to the volume total.

Canola contracts held good gains throughout the day with the upward price action tied the good demand from the domestic processing sector, brokers said. They noted that crush margins continue to be favourable and that the processors have good sales on the books and need canola to meet commitments.

Steady pricing of old export business by commercial accounts contributed to the strength seen in canola. A drop off in farmer deliveries of canola into the cash pipeline was also a supportive price influence for values, brokers said.

Some small speculative and local demand for canola was also evident throughout the session, helping to augment the price advances.

The absence of willing sellers also helped to exaggerate the price gains seen in canola, traders said.

The upside in canola was limited by profit-taking and sentiment that canola output in western Canada may be higher than first anticipated, brokers said.

Overbought market conditions also restricted the price advances seen in canola.

There were an estimated 29,456 canola contracts traded Tuesday, up from the 25,363 contracts that changed hands during the previous session. Of the contracts traded, 19,638 were spread related.

Western barley futures were unchanged and untraded Tuesday. On Monday no western barley contracts were traded.