ICE Canada Review: Fund Selling Sends Canola Lower

Strong reports of beneficial precipitation for soy crops in both Brazil and Argentina added to the market’s unfriendly tone, as above average production has been reported, brokers said.

Declines in the CBOT soy complex, along with overnight losses in Malaysian palm oil and European rapeseed helped to put canola prices on the defensive, experts said.

Losses were tempered by a decline in the value of the Canadian dollar, which was trading at about a quarter of a cent lower on the day, market watchers said.

Also supportive to values was the continued strong demand from domestic crushers, along with the pricing of old export business, analysts said.

Concerns that canola acres may be replaced by wheat in western Canada was another factor that limited losses in the deferred contracts, brokers said.
About 34,156 contracts were traded on Monday, which compares with Friday, when an estimated 24,142 contracts changed hands. Spreading accounted for about 25,844 of the contracts traded.

Western barley futures traded were unchanged and untraded on Monday.

Settlement prices are in Canadian dollars per metric ton.