ICE Canada Review: Oversold Ideas Lift Canola

The strength displayed by CBOT soybean and soyoil futures on Friday when the ICE Canada trading platform was closed in observance of Canada’s Remembrance Day, also influenced some of the upward price action experienced by canola, traders said.

The advances posted overnight in Malaysian palm oil helped to inject some strength into canola with the small advances seen in CBOT soybeans and soyoil Monday also an underpinning price influence, brokers said.

Some minor support in canola was also derived from the buying back of previously sold positions by speculative accounts. Routine exporter pricing by commercials and steady domestic crusher demand also provided a firm floor for canola values, traders said.

The upside in canola was restricted by elevator company hedge selling, which was stimulated by a minor pick up in farmer selling on the weekend. The increase in canola movement by farmers was tied to the premiums being offered by the elevator companies, brokers said.

Profit-taking at the highs of the day and the continued bearish chart outlook also limited the upside price potential. There were an estimated 10,861 canola contracts traded Monday, down from the 20,965 contracts that changed hands during the previous session.

There were no western barley contracts traded during the session. However, ICE Canada arbitrarily lowered the March forward futures contracts by C$2.00 per metric ton.