ICE Canola Corrects Lower In Light Overnight Trade

After following the CBOT soy complex higher on Tuesday due to frost concerns in the US, traders thought both markets were due for a corrective pullback on Wednesday.

While both the Canadian canola and the US soybean crops remain vulnerable to an early frost, an analyst pointed out that crop conditions are still good for the time being. He expected western Canadian farmers would continue to make good harvest progress, which should weigh on values.

Ongoing strength in the Canadian dollar, which was up nearly a third of a cent compared to its US counterpart early in the day, should also put some downward pressure on canola.

From a technical standpoint, an analyst thought the rally on Tuesday could have shifted the bias to the upside. However, the nearby November contract was back below the key C$400 per ton chart level in overnight activity.

Malaysian palm oil futures were higher in overnight trade, while European rapeseed futures moved lower.

About 300 canola contracts had traded as of 8:52 CDT.

Western barley futures were unchanged and untraded in overnight activity.

Prices in Canadian dollars per metric ton at 8:52 CDT: