ICE Canola Consolidating Lower

Calls for a weaker start in the CBOT soy complex, along with overnight declines in Malaysian palm oil futures, were accounting for some spill-over selling pressure in the canola market Monday morning, according to traders.

The Canadian dollar was slightly firmer Monday morning, which was also bearish for canola.

With the production concerns in western Canada largely priced into the market for the time being, an analyst said canola was seeing some consolidation. While crop conditions are showing some improvement, he added that the lateness of this year’s crop will limit any downside, as attention will soon turn to the possibility of frost damage in the fall. The ongoing European drought concerns also helped limit the downside in canola.

From a technical perspective, the uptrend remains intact for canola with any declines likely seen as good buying opportunities, according to an analyst. However, he noted that the market would also remain vulnerable to profit-taking.

About 550 canola contracts had traded as of 8:31 CDT.

Western barley futures were untraded and unchanged.

Prices in Canadian dollars per metric ton at 8:31 CDT: