ICE Canada Review: New Crop Canola Ends Up, But Old Crop Down

The ‘fight for acres’ heading into spring accounted for the relative strength in the new crop contracts, as the spread between old and new crop canola was narrowing on Monday, said traders. Recent advances in wheat prices accounted for some of the strength in the new crop canola contracts, as the high wheat prices could have some producers adjusting their planting intentions to include more wheat over canola.

Early gains in CBOT soybeans were also supportive for canola. However, as soybeans turned lower canola also backed away from its highs for the session and most of the front months posted small declines, said traders.

Farmer selling, encouraged by the recent strength in the market, also weighed on values. However, the farmer selling was mostly on a scale-up basis, with export and domestic crusher demand still willing to pay higher prices to acquire their necessary supplies, according to a broker.

The Canadian dollar was holding steady on Monday, providing little direction for the canola market.

About 24,106 contracts were traded on Monday, which compares with Friday when an estimated 22,741 contracts changed hands. Spreading accounted for about 20,402 of the contracts traded.

Western barley futures were untraded and unchanged.

Settlement prices are in Canadian dollars per metric ton.