ICE Canola Climb On Steady Crusher Demand, Gains in Soy

Canola futures found support overnight from the advances posted in e-CBOT soybeans, European rapeseed and global crude oil futures.

The strong processor demand in canola was linked to extremely profitable crush margins, brokers said.

Some of the commercial interest that surfaced in canola was also tied to talk of fresh export demand. Exporters confirmed that at least one cargo of Canadian canola was sold to Pakistan during Wednesday’s session. While the exporters were unable to confirm any new business Thursday, there were strong indications that new sales to Pakistan and possibly China have been made, traders said.

Strength in canola was also linked to ideas that the commodity was under-valued in comparison to the other oilseeds and needed a further upward boost.

Weakness in the Canadian dollar was viewed as supportive for canola with a drop off in producer movement into the cash market helping to generate a firm price floor.

Cash bids in the country side were said to have hit the C$10 a bushel level in most regions and had stimulated movement of what producers had been willing to sell at that level. However, producers were now waiting for cash bids to get into the C$11 range before taking time off from planting to deal with marketing issues, brokers said.

Fresh speculative buying spurred on in part by the penetration of technical resistance contributed to the advances seen in canola, traders said.

Some position evening ahead of Friday’s grain stocks in all positions report from Statistics Canada was a small feature of the activity.

There were an estimated 8,992 canola contracts traded at 11:02 CDT. Of the contracts traded, 3,012 were spread related.

At 11:02 CDT, no western barley futures had changed hands.

Prices in Canadian dollars per metric ton at 11:02 am CDT: