ICE Canada Review: Canola Corrects Higher, Following Soy

Gains in Chicago soybeans, along with ideas that Friday’s losses were overdone, provided some support for canola, according to market participants. While persistent fund long liquidation did keep a lid on the gains for most of the day, that selling pressure eventually backed away and allowed values to post solid gains, said a broker.

Steady domestic crusher demand was supportive for canola. While crush margins have declined recently, the margins are still very profitable and the crush continues to move forward at a record pace, said a broker.

Activity in the Canadian dollar was also choppy on Monday, but the currency was slightly weaker late in the day, which was somewhat supportive for canola.

The US markets will be closed on Thursday for the US Thanksgiving holiday, while Canadian markets will remain open. Some positioning ahead of the US market closure was a feature in the grain and oilseed markets on both sides of the border.

About 8,085 contracts traded on Monday, which compares with Friday when an estimated 17,970 contracts changed hands. Spreading was a feature, accounting for 3,274 of the contracts traded.

Western barley futures were untraded and unchanged.

Settlement prices are in Canadian dollars per metric ton.