ICE Canada Review: Canola Follows Soy-Complex Higher

Volumes were on the light side in canola on Friday, with traders showing some caution ahead of the long weekend. Canadian markets will be closed Monday, August 2, for the August long weekend, while the US markets will remain open.

Canola was lacking any fresh fundamental news of its own and was largely up in sympathy with the gains in the Chicago soy complex on Friday. The rally in wheat was also providing spillover support, according to traders.

Commercials were on both sides of the trade, with fund participants largely absent on Friday, according to traders.

Crop conditions across western Canada are generally said to be improving, which was limiting the upside in canola as analysts have been revising their production estimates higher. However, supplies will still be tight, and there is enough uncertainty regarding new crop production to keep a weather premium in the canola market, said traders.

The Canadian dollar was stronger on Friday, which was limiting the upside in canola.

Technical resistance was also coming forward at the session highs, with the C$460 per metric ton level in the November contract providing some solid chart resistance.

About 6,600 contracts traded on Friday, which compares with Thursday when an estimated 7,906 contracts traded. Spreading accounted for about 1,346 of the contracts traded.

Western barley futures were untraded and unchanged on Friday.

Settlement prices are in Canadian dollars per metric ton.