ICE Canada Review: Canola Up On Weather, Bullish Charts

In addition to the ongoing crop concerns in western Canada that continue to underpin canola, adverse weather conditions for the European rapeseed crop were also starting to account for some of the buying interest in the market, according to a broker. He noted that the spread between ICE canola futures and the Matiff rapeseed market has widened out recently, and Thursday’s gains in canola were helping narrow that gap.

Buy stops were hit on the way up, as the charts continue to look bullish for canola after breaking above C$440 per metric ton in the November contract on Wednesday, said the trader.

Gains in Chicago soybeans, improving global economic sentiment, and a slightly weaker Canadian dollar added to the firmer tone in canola, said market participants.

Fresh export pricing was also said to be taking place, possibly to China, although there was no confirmation.

Farmer selling, encouraged by the recent advances, tempered the upside in canola. Ideas that the market may be vulnerable to a profit-taking correction also helped keep the advances in check, according to a broker.

About 14,739 contracts traded on Thursday, which compares with Wednesday when an estimated 8,524 contracts traded. Spreading accounted for about 1,858 of the contracts traded.

Western barley futures were untraded and unchanged on Thursday.

Prices are in Canadian dollars per metric ton.

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