ICE Canada Review: Exports, CBOT Gains Lift Canola

Good commercial buying interest during the session, some of which was believed to be covering fresh export business with Mexico, helped to spark the upward price momentum, traders said. Exporters were unable to confirm any fresh sales of canola.

Some of the commercial interest was also said to be covering an increase in demand from the domestic processing sector, brokers said.

Oversold market conditions helped contribute to the strength seen by canola with the buying back of previously sold positions by a variety of market participants also linked to the advances, traders said.

The advances in canola during the session were amplified by the absence of willing sellers.

The selling that did surface in canola was tied to the record large soybean crop in South America and to the steady trickle of farmer deliveries into the cash pipeline in western Canada, brokers said.

The gains in canola were also restricted by the strength of the Canadian dollar.

Losses in Malaysian palm oil futures overnight also helped to limit the upside in canola early in the day.

There were an estimated 10,482 canola contracts traded Tuesday, up from 9,606 during the previous session. Of the contracts traded, 5,278 contracts were spread related.

Western barley futures were little changed with market players refusing to budge off the sidelines in the absence of open interest as well as fresh market moving news, traders said.

There were no barley contracts that changed hands during the session. On Monday, no barley contracts were traded.