ICE Canada Review: Canola Up On Harvest Delay Concerns

Rain related harvested delays have renewed concerns about canola being vulnerable to an early frost. There has also been some uncertainty thrust back into the canola market regarding yield potential, brokers said.

Canola had found some early strength from the advances seen overnight in Malaysian palm oil and some carryover buying from the gains seen last week.

Early advances in canola had also been linked in part to continued rumours about Chinese demand for Canadian canola, traders said. No fresh business, however, could be confirmed.

Steady domestic crusher demand contributed to the strength seen in canola as did some light chart based buying by speculative accounts, brokers said. The early advances in CBOT soybean futures had also initiated some price strength in canola.

The advances in canola were tempered near the close by the sell-off experienced in CBOT soybean values and by the expansion of the losses seen in CBOT soyoil futures during the day, brokers said.

Long liquidation orders from speculative accounts also helped canola values move off the highs of the day and some contracts momentarily into the loss territory, traders said.

There were an estimated 7,659 canola contracts traded Monday, down from the 16,739 contracts that changed hands during the previous session.

Western barley futures were unchanged with no western barley futures traded on Monday. On Friday, no barley contracts changed hands.