ICE Canada Review: Harvest, Soyoil Losses Take Canola Down

The absence of willing buyers added to the bearish sentiment in canola.

Canola contracts also were undermined by the losses seen in CBOT soyoil futures and from the improved weather conditions for the advancement of the harvest in western Canada, brokers said.

Continued firmness in the value of the Canadian dollar helped to send buyers to the sidelines and in turn added to the bearish price tone seen in canola.

Chart related liquidation orders helped to fuel the downward price slide.

The large crop production outlook for the US soybean crop was also an undermining price influence on canola.

Scale down pricing of old export business tempered some of the price weakness in canola as did light domestic crusher demand.

Spreading was a feature of the activity and helped to contribute to the volume total.

There were an estimated 11,370 canola contracts traded Wednesday, up from the 9,488 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, accounting for the small gains, brokers said.

There were 10 western barley futures traded on Wednesday. On Tuesday, no barley contracts were traded.