ICE Canada Review: Canola Down On Spec Selling, Weather

Canola futures traded at weaker levels for most of the session, despite early gains in Chicago soyoil. Speculative long-liquidation was behind most of the selling, as the technical signals have turned lower for canola, according to a broker.

Generally favourable weather conditions were also bearish for canola values, as producers across the Canadian Prairies are finally making some headway on planting what could be a record large canola crop, the broker added.

A firmer tone in the Canadian dollar early in the day also accounted for some of the selling pressure in the market. However, the currency eventually moved lower, providing some support for canola, according to traders.

Scale-down exporter and domestic crusher pricing was also helping limit the declines.

About 6,746 contracts traded on Tuesday, down from Monday when an estimated 9,699 contracts traded. Spreading was only a small feature on the day.

Western barley futures were untraded an unchanged once again on Tuesday, as all of the activity in the commodity remains confined to the cash market.