ICE Canola Contracts Hold Firm On Export Ideas

"There appears to be some good commercial demand coming forward that looks to be covering fresh export demand," a broker said. There were indications the business could be fresh sales to Mexico or possibly Pakistan.

Exporters, however, were unable to confirm any fresh sales.

The buying back of previously sold positions by a variety of market participants was also generating some of the strength seen in canola, traders said.

Gains overnight in Malaysian palm oil had helped to initiate some early support for canola, with the opening advances in CBOT soyoil futures also encouraging some early buying interest, brokers said.

The advances in canola were amplified by the thinness of the volume, with a number of key market players in attendance at the Canola Council of Canada’s annual conference being held in San Francisco, California March 18 and 19.

The upside in canola was being limited by the midmorning downturn in CBOT soybeans and as CBOT soyoil gains began to erode. The strength of the Canadian dollar was an undermining price influence as was the light, but steady hedge selling by grain companies in western Canada, brokers said.

Adding to the bearish atmosphere in canola were the record large global oilseed supplies and the potential for canola area to be up significantly this spring, brokers said.

There were an estimated 2,226 canola contracts traded at 10:27 CDT. Of the contracts traded, 880 consisted of spreads.

There were no western barley futures traded as of 10:27 CDT.