ICE Canola Down, But Tightening Stocks Supportive

Calls for a steady to lower start to the North American session for the CBOT soy complex were spilling over to put some downward pressure on canola. Some light farmer hedges were also said to be coming forward at the higher price levels.

Continued strength in the Canadian dollar, which was up two thirds of a cent relative to its US counterpart in early trade, also weighed on canola values.

Domestic crushers and exporters remain noted buyers in canola, limiting the downside, according to traders.

Canadian canola stocks, as of December 31, were pegged at 8.2 million metric tons by Statistics Canada, about 1.2 million tons lower than the same point the previous year. While traders had generally anticipated the tighter stocks, given this year’s smaller crop, the report was still supportive for canola as it highlighted the need to ration demand going forward.

Malaysian palm oil was untraded overnight, with the markets there closed for the Lunar New Year.

About 1,500 canola contracts had traded as of 8:46 CST.

Western barley futures were untraded and unchanged Friday morning. Statistics Canada pegged barley stocks in the country, as of December 31, at 5.7 million metric tons, which compares with 7.5 million at the same point the previous year.

Prices in Canadian dollars per metric ton at 8:46 CST: