ICE Canola Down As Harvest Progresses

Warm, dry weather across most of western Canada is allowing farmers to make good harvest progress, with canola yields generally coming in better-than-expected. A market analyst said canola was now largely past the point where a frost would cause concern.

Traders added that farmer selling was picking up in the canola market, which weighed on prices.

Losses in the CBOT soy complex were also accounting for some spillover selling in canola, according to traders.

The analyst said technical weakness was also a factor in the day’s trade, although he noted that the nearby support level of C$375 per ton was holding in the November contract.

Scale-down exporter and domestic crusher buying helped limit the losses in canola, according to traders.

A slightly weaker tone in the Canadian dollar was also support for canola values.

At 10:51 CDT, about 9,500 canola contracts had changed hands. The Nov/Jan spread was a feature of the trade, accounting for about a third of the activity.

Western barley futures were steady to lower at midsession, taking some direction from CBOT corn. The good Canadian harvest weather was also bearish for barley. About 40 barley contracts had traded by 10:51 CDT.

Prices in Canadian dollars per metric ton at 10:51 CDT: