ICE Canola Climbs, CBOT Soyoil Gains Supportive

Overnight gains in Malaysian palm oil and strength in global crude oil helped to underpin canola futures, brokers said.

The slow pace of producer offerings combined with concerns about canola production prospects in western Canada also continued to offer some underlying support to the commodity, traders said.

Low overnight temperatures in Alberta were seen heightening ideas that the canola crops are developing slowly and will be at a greater risk for frost in the fall. Traders, however, pointed out that while the cold readings are a concern, there has been little damage overall to the crop so far.

Light pricing of old export business further underpinned canola futures.

The upside in canola was being limited by the strong Canadian dollar, with the currency up more than a cent in comparison to its US counterpart early Wednesday, brokers said. The strong Canadian dollar was seen cutting into profit margins for domestic processors and keeping fresh export interest in Canadian canola on the sidelines.

The good growing conditions for the US soybean crop was also viewed as an undermining price influence for canola, traders said.

There were an estimated 1,928 canola contracts traded at 10:49 CDT. Of the contracts traded, 310 were spread related.

There were 95 western barley futures traded as of 10:49 CDT. Sluggish demand continued to weigh on prices with it only taking a small amount of commercial selling to push values down in the absence of willing buyers, brokers said.

Prices in Canadian dollars per metric ton at 10:49 am CDT: