ICE Canola Contracts Most Up, CBOT Gains Underpin

Support in canola was stemming from the advances seen in CBOT soybean and soyoil futures, as well as the gains posted overnight in Malaysian palm oil futures, market watchers said.

Steady commercial demand helped to influence some of the upward price action seen in canola. Some of that demand was said to be covering domestic processor needs as well as old export business. There were also rumours of fresh export business being put on the books, but no official confirmation was available, brokers said.

Canola was subject to some "downward flushes" as sell-orders hit canola and then stopped just as quickly, brokers said.

"That selling was just enough to trigger some tight sell-stops in the market which brought select canola contracts down, and then back up," a trader said. Much of the selling in the market was said to be speculative in nature.

Weakness in canola was also associated with the reduced frost threat to the canola crop in western Canada given the advancing harvest operations, brokers said.

Also restricting the price advances in canola was steady elevator company hedge offers. Brokers said with the cash price for canola sitting over C$10 a bushel in most locations, producers have been taking advantage of the opportunity to deliver at those values.

Strength in the Canadian dollar early Friday was also an undermining price influence.

Position evening ahead of the weekend was a feature of the activity in canola, brokers said.

There were an estimated 5,121 canola contracts traded at 10:12 CDT.