ICE Canola Correcting Higher

Calls for a higher start in the CBOT soy complex were providing some underlying support to the market. Malaysian palm oil futures were also higher in overnight activity.

In addition to the technical correction higher, there was also some routine exporter and domestic crusher pricing supporting canola values.

Traders said there was still enough uncertainty with regards to the size of this year’s canola crop to underpin the canola market. However, an analyst also noted that most of the production problems have already been priced into the market, and with crop conditions showing some improvement recently there may not be much more room to the upside for the time being.

Steady farmer selling tempered the upside in the canola market, although that selling pressure has backed away slightly after the futures moved lower earlier this week.

The Canadian dollar was firmer Wednesday morning, which was also limiting the gains in canola.

About 830 canola contracts had traded as of 8:26 CDT.

Western barley futures were untraded and unchanged.

Prices in Canadian dollars per metric ton at 8:26 CDT: