ICE Canola Continues Short-Covering Bounce

Overnight gains in Malaysian palm oil and European rapeseed futures also provided some support, as all of the oilseed markets are still thought to be oversold, according to an analyst.

The CBOT soy complex was also higher in overnight electronic trade, although soybeans eventually took back most of their overnight gains and were only called to start slightly higher at the beginning of the North American session.

Reluctant farmer selling was also cited as a supportive price influence for canola. However, with the overall trend still pointed lower, traders expected to see farmer selling pick up on any attempts to take prices much higher.

An analyst also cautioned that the short-covering currently in the market could quickly fade, causing prices to drift back lower.

About 850 canola contracts had traded as of 8:52 CST. The March/May spread was a minor feature as participants continue to roll their positions out of the nearby March contract.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:52 CST: