ICE Canada Review: Canola Ends Mostly Up In Month-End Positioning

The gains in the July contract were primarily tied to position-evening, as traders look to exit the nearby contract before it becomes the cash month. Technical buying added to the firmer tone, as prices managed to surpass nearby chart resistance, according to traders.

Farmers remain reluctant sellers of their old crop supplies, given the uncertain production prospects for this year’s crop, which added to the firmer tone in the front month, said a broker.

Trade was more range-bound in the deferred contracts. Ideas that the market was oversold after Thursday’s declines, and due for a correction higher provided, some underlying support. However, there was also sentiment in the market that Thursday’s correction wasn’t large enough, resulting in some additional long liquidation on Friday, said traders.

A lack of exporter and domestic crusher demand also put some pressure on values, as the end users are still adjusting to the higher market conditions, according to a broker.

The ongoing weather concerns in western Canada remained supportive for canola, with large acres left unseeded and many areas still dealing with excessive moisture. The firmer tone in Chicago soybeans on Friday also provided some support.

About 18,916 contracts traded on Friday, which compares with Thursday when an estimated 21,261 contracts traded. Intermonth spreading was a small feature on the day, as participants continue to roll their positions out of the nearby July contract.

Western barley futures were untraded and unchanged on Friday, lacking any clear direction.

Prices are in Canadian dollars per metric ton. Settlement