ICE Canada Review: Canola Strengthens, Fund Buying Supportive

ICE Canada Review: Canola Strengthens, Fund Buying Supportive

After bouncing around for most of the session, the canola market turned decidedly higher late in the day. Commodity and index fund traders took profits on some of their long positions last week, and were said to be back on the buy side to start the new month.

Good domestic crusher and exporter demand also provided some underlying support to canola, with advances in CBOT soyoil spilling over to pull canola higher as well, according to traders.

Reluctant farmer selling was another supportive influence for canola, according to traders. However, a broker pointed out that producer deliveries into the commercial grain handling system continue to come in at a steady pace and the large commercial holdings may be tempering the advances.

A firmer tone in the Canadian dollar served to limit the upside in canola, according to traders. Uncertainty ahead of next week’s USDA supply/demand report also kept activity in the market on the choppy side, said traders.

About 10,446 contracts traded on Monday, which compares with Friday when an estimated 12,117 contracts changed hands. Spreading accounted for about 2,862 of the contracts traded. Western barley futures were untraded and unchanged on Monday.

Settlement prices are in Canadian dollars per metric ton.