ICE Canola Corrects Lower

A trader said Tuesday’s rally was a little overdone, which could lead to some consolidation lower on Wednesday. Calls for a weaker start to the CBOT soy complex were also expected to put some pressure on canola prices.

Large global oilseed supplies also remain a bearish influence overhanging the canola market, according to traders.

However, the technical bias may be turning higher, according to an analyst who saw Tuesday’s rally as a bullish chart signal.

Reluctant farmer selling and steady end user demand were also cited as supportive price influences.

Malaysian palm oil futures moved higher in overnight trade, lending some spillover support to canola. The Canadian dollar was holding steady Wednesday morning, providing little direction for canola. Although, a trader noted that the currency was still relatively strong after rallying sharply on Tuesday, which could weigh on canola values.

About 6,400 canola contracts had traded as of 8:44 CST, with the March/May spread a major feature.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:44 CST: