ICE Canola Corrects Higher

A trader said the recent losses in canola were overdone from a technical standpoint, leaving the market open to a corrective bounce.

Calls for a firmer start in the CBOT soy complex, along with gains in equities and crude oil, should provide some further support for canola, said traders.

Steady exporter and domestic crusher pricing was also underpinning canola, according to traders who noted that the recent weakness in the market was likely bringing in some bargain hunting.

However, the ongoing strength of the Canadian dollar could limit the upside potential in canola.

Large South American soybean supplies overhanging the market, and expectations for increased North American oilseed acres, also remained bearish for canola.

Malaysian palm oil futures were slightly lower in overnight activity.

About 1,000 canola contracts had traded as of 8:50 CDT.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:50 CDT: