ICE Canada Review: Canola Up Again On End User, Spec Buying

Commercials were the noted buyers in canola early in the day, with solid crush margins encouraging some domestic crusher pricing, according to traders. Fresh export business was also propping up prices, with Dubai rumored to be making some purchases.

A weaker tone in the Canadian dollar provided further support for canola, as did the early gains in the CBOT soy complex, according to market participants.

While soybeans moved off their highs to finish with small declines, canola remained pointed higher. A trader said speculators were featured buyers in canola late in the session and noted that "the funds seemed to want canola up at the close."

Scale-up farmer selling tempered the gains in canola, with some producers taking advantage of the rising prices. However, growers are generally of the opinion that canola has more room to the upside, which kept the hedges on the light side, according to a trader.

Recent rains in Argentina also put some downward pressure on canola, as the improving prospects for the soybean crops there weighed on the oilseed markets.

About 17,601 contracts were traded on Wednesday, which compares with Tuesday when an estimated 14,862 contracts changed hands. Spreading accounted for about 4,441 of the contracts traded.

Western barley futures were untraded and unchanged.

Settlement prices are in Canadian dollars per metric ton.