ICE Canola Consolidates Higher

Calls for a higher start in CBOT soybeans, along with overnight advances in Malaysian palm oil and European rapeseed futures, were providing some underlying support to canola, according to traders.

A lack of farmer selling added to the firmer tone in canola, as producers have largely moved to the sidelines after making active sales earlier in the week, according to traders.

There is also still enough uncertainty with regards to the size of this year’s canola crop to also underpin the canola market, according to market participants. However, crop conditions across western Canada are generally improving, and they also said there may not be much more room to the upside barring further weather problems. As a result, an analyst said canola may be entering a consolidative pattern.

The Canadian dollar was firmer Thursday morning, up about half a cent relative to its US counterpart. The strength in the currency put some downward pressure on canola, as it cuts into crush margins and makes the commodity less attractive to export customers.

About 675 canola contracts had traded as of 8:32 CDT.

Western barley futures were untraded and unchanged.

Prices in Canadian dollars per metric ton at 8:32 CDT: