ICE Canada Review: Canola Up With Improved Economic Sentiment

Easing global economic concerns accounted for most of the buying interest in many markets, including canola, as sentiment out of Europe was said to be improving and investors showed a renewed appetite for risk, said traders.

Exporters and domestic crushers were both noted buyers as well, amid ideas canola had become oversold recently, said a broker. However, any demand from the commercial sector was largely the pricing of old business, with no new sales confirmed.

Light farmer hedges did temper the upside in canola, as firm basis levels in the country have worked to encourage sales, said market participants. Although, they added that most farmers do remain reluctant sellers overall.

The strength in the Canadian dollar, which was up by over a cent relative to its US counterpart, did temper the advances in canola, said traders.

About 14,512 contracts were traded on Monday, which compares with Friday when an estimated 15,556 contracts changed hands. Spreading accounted for 9,806 of the contracts traded.

 Western barley futures were untraded and unchanged.

Settlement prices are in Canadian dollars per metric ton. (*settlements unavailable, price is last quoted trade)