ICE Canada Review: Firm C$ Limits Canola Gains

Canola saw a light to moderate trade with very little intermonth spreading evident in the activity.

The total canola volume was estimated at 9,182 contracts, down from Tuesday’s 12,115 contracts, including an estimated 458 contracts involved in the spread trade.

Canola saw prices bounce to both sides of Tuesday’s close in the overnight trade amid a lack of strong market direction. Canola was lower as the North American trading session got underway and canola posted further declines as the Chicago Board of Trade soy complex opened higher, but quickly turned lower. Canola ended narrowly mixed in dull lackluster activity, said participants.

Canola was pressured down by the firm Canadian dollar and the weak tone in the US soy complex. Contributing to the weakness was increased country movement as farmer pricing accelerated, cash dealers said. There was really little fresh news to stimulate the market and that accounted for the thin dull volumes.

Canola drew some support from friendlier technical signals and exporter pricing of fresh sales, although sources would not identify the ultimate destination of those sales.

Exporters were steady strong buyers throughout the session with crusher buying on the light side. The selling was mainly commercial with heavier elevator company selling noted. Speculative participants were largely on the sidelines today.

Western barley ended the day lower in very small volumes. Commercials were the only traders with prices generally undermined by a lack of interest, brokers said.

The total barley volume was estimated at 30 contracts, up from no volume on Tuesday.