ICE Canada Review: Canola Closes Higher As Selling Dries Up

ICE Canada Review: Canola Closes Higher As Selling Dries Up

Profit-taking on the recent advances did weigh on canola values early in the session. However, that selling pressure eventually dried up and prices turned higher.

"The market just wanted to go up," said a local trader.

The gains in canola were partially tied to the weaker tone in the Canadian dollar, according to a broker. A weaker currency helps improve crush margins for domestic processors, while also making canola more attractive to export customers.

End user demand was behind some of the advances in canola as well, although traders were unable to confirm any fresh export business.

A slow-down in farmer selling was also supportive for canola, as many producers have made their sales for the time being and are now moving to the sidelines in anticipation of even higher prices down the road, said market participants.

A softer tone in the CBOT soy complex for most of the session did limit the upside in canola. However, soybeans eventually turned higher themselves.

About 27,221 contracts traded on Wednesday, which compares with Tuesday when an estimated 29,456 contracts changed hands. Spreading was a feature of the day’s trade, accounting for 14,840 of the contracts traded.

Western barley futures were steady on Wednesday, although only one contract had actually traded. Expectations for generally large feed grain supplies in western Canada were likely putting some pressure on values, according to a broker.

Settlement prices are in Canadian dollars per metric ton.