ICE Canada Review: Canola Sees Slight Recovery

Canola uncovered technical support after declining recently, and speculative short-covering accounted for some of the buying interest during the day, according to traders. Gains in CBOT soyoil and soybeans, provided some further support.

Exporter and domestic crushers were both on the buy side, pricing old business as they took advantage of the recent weakness in canola, said market participants.

The Canadian dollar was slightly firmer on Tuesday, which tempered the upside in canola.

While canola did post modest gains, the overall outlook remains bearish for the commodity, said a trader who pointed to the ongoing global economic concerns that are expected to keep some caution in the markets.

Positioning ahead of the US Thanksgiving holiday, which will see US markets closed on Thursday and only opened for a shortened session on Friday, also served to keep canola within a narrow range.

About 20,099 contracts were traded on Tuesday, which compares with Monday when an estimated 15,965 contracts changed hands.

Western barley futures were untraded and unchanged.

Settlement prices are in Canadian dollars per metric ton.