ICE Canada Review: Canola Closes Lower In Choppy Trade

Light exporter pricing of routine business accounted for some of the buying interest in canola which propped values up for most of the session, according to a broker. However, that buying dried up late in the day and the lack of liquidity in the market allowed values to turn lower by the close.

Technical resistance also weighed on canola, keeping prices range-bound overall. Funds were largely absent from the market during the day, according to a broker.

Overnight losses in Malaysian palm oil, along with weakness in crude oil and the equity markets also put some downward pressure on canola, according to traders.

The ongoing weather concerns in western Canada remained supportive. In addition to the excessive moisture causing problems across much of the Prairies, dryness is also leading to concern for the crops in the Peace River region of Alberta, said traders.

With production still very much unknown this year, farmers continue to be reluctant sellers, which was keeping values supported, according to traders.

A slightly weaker tone in the Canadian dollar was also underpinning the canola market on Monday by helping improve crush margins and by making the commodity more attractive to export customers.

About 2,424 contracts traded on Monday, which compares with Friday when an estimated 5,326 contracts traded. Spreading accounted for about 868 of the contracts traded.

Western barley futures were steady to higher on Monday, with all of the trade confined to the nearby July contract as participants cleaned up the remaining open interest in the front month.

Prices are in Canadian dollars per metric ton.

Settlement