ICE Canada Review: Canola Ends Mostly Higher In Choppy Trade

Profit-taking by fund traders and other speculators did weigh on canola values early in the day, as participants were covering some of their long positions ahead of the year end, according to traders.

However, that selling pressure eventually backed away and the strong end user demand underneath the market allowed values to edge higher, said traders.

Gains in Chicago soybeans provided some spillover support for canola, with the weaker Canadian dollar another bullish price influence. The declining currency was helping crush margins improve, accounting for some of the domestic crusher buying interest in the market, said a broker.

Activity was choppy and volatile overall, but range-bound as participants start to show some reluctance to push values too far one way or the other during the Christmas period, said a broker.

About 32,424 contracts traded on Friday, which compares with Thursday when an estimated 23,804 contracts changed hands. Spreading was a feature, accounting for 26,674 of the contracts traded.

Western barley futures were untraded and unchanged.

Settlement prices are in Canadian dollars per metric ton.