ICE Canada Review: Canola Up On Export Ideas, CBOT Gains

There was speculation in the market that some fresh business had come forward for canola, which in turn caused a number of market participants to start buying back previously sold positions, traders said. Exporters, however, were unable to confirm any fresh sales of Canadian canola had been made.

Steady demand from the domestic processing industry and the pricing of old export business to Japan by commercials also provided canola with a firm floor to work with, brokers said.

Sentiment that the precipitation received in Alberta during the past few days was not enough to alleviate dryness concerns in that province, also generated some support, traders said.

The upside in canola was restricted by steady hedge selling by grain companies, as producers in western Canada continued to price canola in storage. The upward push in the value of the Canadian dollar towards parity with the US currency was also viewed as a factor limiting the strength in canola, brokers said.

The large global oilseed supply situation, the prospects of record area being planted to soybeans in the US and canola in western Canada, also were undermining price influences, traders said.

The bulk of the volume seen in canola Tuesday was spread related with fund accounts rolling positions out of the nearby May future and into the July or November contracts.

There were an estimated 12,537 canola contracts traded Tuesday, down from 20,601 during the previous session. Of the contracts traded,8,768 contracts were spread related.

Western barley futures were unchanged and untraded in non-existent activity.

No barley contracts changed hands during the session. On Monday, no barley contracts were traded.