ICE Canada Review: Canola retreats on profit-taking

Adding to the price weakness in canola was sentiment values had become overbought and were in need of a downward correction, brokers said. Adding to the bearish price sentiment in canola was the strong uptrend in the value of the Canadian dollar.

Weather outlooks calling for improved harvest conditions across much of western Canada over the next few days added to the downward price action seen in canola, traders said.

Elevator company hedge selling was on the light side, but still enough to put prices on the defensive.

The losses in canola were offset in part by steady domestic crusher demand and by the pricing of old export business to Japan. Strength in CBOT soybean and soyoil futures also helped to generate a firm price floor for canola, brokers said.

Some spreading was evident and helped to augment the volume in canola.

There were an estimated 9,488 canola contracts traded Tuesday, down from the 13,226 contracts that changed hands during the previous session.

Western barley futures were unchanged with no contracts changing hands on Tuesday. On Monday, no barley contracts were traded.