ICE Canada Review: Canola Higher, But Lags Soy To Upside

Unexpectedly tight US soyoil supplies and solid US soybean exports helped take the Chicago futures higher on Wednesday, and canola followed suit, according to traders. Gains in crude oil, the equity markets, and other international oilseeds were also supportive for canola.

Some routine exporter pricing added to the firmer tone, as did a general lack of aggressive farmer selling, said a broker. While there were some hedges finding their way into the market, producers were generally thought to be on the sidelines, holding out for larger advances in canola.

A lack of the fund liquidation that weighed on values recently also helped keep canola supported, according to traders.

However, the Canadian dollar was up by over a cent relative to its US counterpart on Wednesday, which weighed on canola. A firmer currency cuts into domestic crush margins and also makes canola less attractive to export customers.

US markets will be closed Thursday for Thanksgiving, while the Canadian markets will remain open. Some caution ahead of the US holiday tempered the activity in the Canadian canola futures as well.

About 11,799 contracts traded on Wednesday, which compares with Tuesday when an estimated 11,876 contracts changed hands. Spreading was a feature, accounting for 5,532 of the contracts traded.

Western barley futures were untraded and unchanged.

Settlement prices are in Canadian dollars per metric ton.