ICE Canola Contracts Hold Firm On Spec Demand

Some of the early strength in canola was also linked to the near highs established by Malaysian palm oil and European rapeseed futures overnight, brokers said.

Steady domestic crusher demand and the pricing of old export business contributed to some of the upward price action.

Additional gains in canola were associated with the early advances posted by CBOT soybean and soyoil values, traders said.

The upside in canola was limited by profit-taking at the highs. A downturn in CBOT soybean values shortly after the opening helped to weaken the upward momentum in canola as well, traders said. Elevator company hedge selling on a scale up basis, further restricted the price gains seen in canola.

The Canadian dollar also had been trading at a firmer price level early in the session, but when the US dollar began to rally around midsession, the Canadian currency began to weaken off, helping to provide some underlying support for canola, brokers said.

Spreading was a feature of the activity seen in canola and helped to augment the volume total.

There were an estimated 9,916 canola contracts traded at 10:27 CST.

There were 2 western barley futures traded as of 10:27 CST. Light commercial demand in the absence of willing sellers helped to buoy the March contract, brokers said.