ICE Canada Review: CBOT Rally Props Up Canola

Sentiment that the losses seen on Friday ahead of the long holiday weekend, also helped to fuel some of the buying that surfaced during Tuesday’s session, brokers said.

The ICE Futures Canada trading platform was closed Monday for Louis Riel Day in Manitoba. US markets were closed for Presidents Day.

Good levels of commercial demand bolstered canola values with some of that interest said to be covering fresh export demand, traders said. No fresh business, however, could be confirmed.

The buying back of previously sold positions by a variety of market participants also helped to send canola values upwards.

A slow down in the level of hedge selling by elevator companies was a supportive price influence with steady pricing of routine export business to Japan by commercials also propping up prices, brokers said.

Domestic crusher demand was also evident and helped to underpin values.

The upside in canola was limited by profit-taking and the large domestic canola supply situation. Strength in the Canadian dollar also helped to slow the price advances, brokers said.

Spreading was a feature of the activity and helped to augment the volume total.

There were an estimated 14,742 canola contracts traded Tuesday, down from 21,387 during the previous session. Of the contracts traded, 12,696 were spread related.

Western barley futures were slightly lower in fairly light, choppy trade. Light commercial liquidation in the absence of willing buyers resulted in the nearby barley contract moving down, traders said.

There were 108 barley contracts that changed hands during the session. On Friday, 213 barley contracts were traded.