ICE Canola Attempting To Bounce Higher Again

In addition to technical short-covering, traders said the relative strength of canola compared to soybeans could be tied to increased export demand. However, any actual new sales were unconfirmed Thursday morning.

Weakness in the Canadian dollar was expected to provide some further support for canola, according to analysts.

Canola was also higher Wednesday morning, before a downturn in the CBOT soy complex eventually spilled-over to weigh on values. Traders expressed caution that a repeat of Wednesday’s pattern was possible.

Losses in crude oil and the equity markets could also spill- over to weigh on the agricultural markets, said an analyst.

Statistics Canada releases its latest grain/oilseed stocks report, as of December 31, on Friday. The report is expected to provide traders with a clearer picture on the size of the 2009 crop. Some positioning ahead of the report was expected, and could keep the canola trade somewhat subdued on Thursday.

About 2,700 canola contracts had traded as of 8:47 CST. The March/May spread was a feature as participants continue to roll their positions out of the nearby March contract.

Western barley futures were steady to higher in overnight activity, although only one contract had actually traded.

Prices in Canadian dollars per metric ton at 8:47 CST: