ICE Canola Down Following Soybeans

Speculative long-liquidation was behind most of the selling pressure on Monday, with the losses in CBOT soybeans triggering that selling pressure, according to a canola trader.

He added that there were no changes to the crop situation in western Canada over the weekend, and that while there is still plenty of production uncertainty, most of those concerns have been priced into the market for the time-being. The trader said farmers in some parts of southern Manitoba could start swathing their canola fields as early as this week, which could be putting some further pressure on values.

The Canadian dollar was stronger at midday Monday, cutting into crush margins and weighing on canola values, according to market participants.

Scale-down exporter pricing helped limit the declines in canola, said traders. The technicals also continue to point higher overall, despite the corrective pull-back, according to an analyst.

At 10:33 CDT, about 4,000 canola contracts had changed hands. A trader described the activity as quiet, and noted that the low volumes could be exaggerating the day’s price movement.

Western barley futures were untraded and unchanged.

Prices in Canadian dollars per metric ton at 10:33 CDT: