ICE Canada Review: Canola Strengthens On Exports, Technicals

Commercials were the noted buyers earlier in the day, with fresh export business to China being priced in the market, according to a commission house trader.

He added that a lack of farmer selling, given the ongoing production uncertainty in western Canada, supported canola values as well.

Concerns about the rapeseed crops in Europe, due to drought conditions, were also lending some support to the Canadian canola market, with the gains in Chicago soybeans another underpinning factor, according to market participants.

A move above chart resistance at C$460 per metric ton in the November canola contract encouraged some speculative buying early in the session. However, overbought price sentiments limited the upside, and a local trader said the market developed a "heavy feel" as the session progressed. He said nervous speculators taking profits likely put some pressure on prices, with improving weather conditions across the Prairies also weighing on values.

About 9,957 contracts traded on Wednesday, which compares with Tuesday when an estimated 11,464 contracts traded. Spreading accounted for about 3,450 of the contracts traded.

Western barley futures were untraded and unchanged on Wednesday.

Settlement prices are in Canadian dollars per metric ton.