ICE Canada Review: Canola Follows CBOT Soybeans Down

Some early support in canola had come from the overnight advances seen in Malaysian palm oil values as well as the weakness experienced by the Canadian dollar, traders said. Good exporter demand, believed to be covering both fresh and old business, had helped to underpin canola prices.

Some initial strength in canola had also come from the opening advances seen in CBOT soybeans and soyoil.

However, when those values began to move downwards, the selling in canola began to intensify, brokers said.

Contributing to the declines in canola was the upturn in the value of the Canadian dollar by midday and the steady level of producers offerings to the country elevator system as revealed by Canadian Grain Commission handling statistics that were released on Friday, brokers said.

Bearish chart signals added to the weakness in canola as did the large global oilseed supply situation.

Activity in canola was on the lighter side, with it not taking much in the way of buying or selling to move the prices, traders said.

Spreading was a feature of the activity and helped to bolster the volume total.

There were an estimated 6,580 canola contracts traded Monday, down from 15,359 during the previous session. Of the contracts traded, 3,000 were spread related.

Western barley futures were steady to slightly higher with only the nearby March posting a gain. Activity was non-existent although the nearby March was bid up in hopes of attracting some sellers, brokers said. Gains in CBOT corn were supportive as was the winter storm in western Canada and the return of colder temperatures.

No barley contracts changed hands during the session. On Friday, 78 barley contracts were traded.