ICE Canada Review: Canola Follows US Markets Higher

With soybeans and corn posting limit up advances on Friday, canola moved higher in sympathy, said traders. Speculators and end users were both making purchases, although canola lagged its US counterparts to the upside.

The nearby November contract moved as high as C$500 per metric ton at one point during the session, before the buying backed away and some harvest pressure came forward to temper the advances, said traders. Profit-taking also weighed on values.

Producers in western Canada continue to make some good harvest progress bringing in this year’s canola crop, and the early rally in the futures encouraged some fresh hedge selling.

The stronger tone in the Canadian dollar, which was up by about half a cent, also helped limit the upside in canola, said traders.

About 29,887 contracts traded on Friday, which compares with Thursday when an estimated 23,162 contracts changed hands. Spreading was a feature of the day’s trade, accounting for a large portion of the trade volumes.

Canadian markets will be closed Monday, October 11, for the Thanksgiving holiday, and some position-evening ahead of the long weekend was noted in the futures.

Western barley futures were steady to higher on Friday, taking some direction from the advances in CBOT corn. However, activity was very light in barley, with only five contracts actually traded.

Settlement prices are in Canadian dollars per metric ton.