ICE Canada Review: Farmer, Spec Selling Weighs On Canola

While there are still some areas of concern for the crops in western Canada, most fields have benefitted from good weather over the past few weeks, and the slightly improved crop prospects were helping encourage some farmer selling, said a broker.

The unseeded canola acres have all been long priced into the market, and what is left is no longer looking as bad as it did earlier in the growing season, the broker said. In addition, some trade estimates are now predicting a 10.5 million metric ton canola crop, which, while still down on the year, is not nearly as tight as once thought.

The charts were also pointing to a possible nearby top in canola, which was accounting for some of the speculative long-liquidation in the market, according to a trader.

Losses in soyoil and crude oil were also bearish for canola, but the weaker Canadian dollar did provide some support.

Scale-down exporter and domestic crusher pricing also helped limit the declines in canola, keeping values within a tight range during the session.

About 8,370 contracts traded on Tuesday, which compares with Monday when an estimated 10,409 contracts traded. Spreading was only a small feature of the day’s trade, with most of the activity confined to the nearby November contract.

Western barley futures were untraded and unchanged on Tuesday.

Settlement prices are in Canadian dollars per metric ton.