ICE Canola Contracts Ease On Hedge Selling

A pick up in the level of farmer deliveries into the cash pipeline and the resulting pick up in elevator company hedge selling, put canola futures on the defensive, brokers said.

Some early weakness in canola was inspired by the losses exhibited by Malaysian palm oil and European rapeseed futures overnight, traders said.

Weakness in CBOT soyoil futures was also helping to encourage some of the downward price action in canola.

Adding to the bearish price atmosphere was liquidation selling by speculative fund accounts and the general firmness in the value of the Canadian dollar, brokers said.

A drop off in fresh export enquiries also was an undermining price influence.

Underlying support in canola continued to come from good levels of domestic processor demand and the pricing of old export business, traders said. Gains in CBOT soybean futures also provided some small support for canola.

The rolling of positions out of the January future and into the March contract continued to be a feature of the activity in canola.

There were an estimated 11,567 canola contracts traded at 10:36 CST. Of the contracts traded, 7,136 were spread related.

There were no western barley futures traded as of 10:36 CST.