ICE Canada Review: Export ideas boost canola

Position evening ahead of the weekend was a feature of the activity seen in canola.

Canola contracts moved higher with the gains tied to a pick up in commercial demand. Much of the commercial interest was said to be covering domestic crusher needs as well as old export business. There were also rumours of fresh export business being put on the books, but confirmation of the new sales were not immediately available, brokers said.

The buying back of previously sold positions helped to influence some of the upward price action. Gains overnight in Malaysian palm oil had offered some early support for canola.

Canola had been subject to "downward flushes" earlier in the day when speculative fund sell-orders were triggered, brokers said.

The upside in canola was also limited by elevator company hedge selling, prompted by steady deliveries of canola by farmers into the cash pipeline. The willingness of producers to deliver was tied to the fact that cash bids in most western Canada locations were above C$10 a bushel, a level at which farmers target for selling.

The advancing harvest of the canola crop in western Canada and sentiment that some of the frost concerns can be taken out of the price outlook helped to restrict the price advances, traders said.

There were an estimated 10,352 canola contracts traded Friday, up from the 9,869 contracts that changed hands during the previous session.

Western barley futures were steady to higher with light commercial bidding in the absence of willing sellers allowing the December future to be pushed higher. There were 10 western barley contracts that changed hands on Friday. On Thursday, no barley contracts were traded.