ICE Canola Down In Cautious Trade

Technical selling, as the canola market takes back some of its recent gains put some downward pressure on values, according to traders. However, commercial demand remains supportive underneath the market, which should limit the downside.

Rain and thunderstorms hit fields in some parts of the Canadian Prairies over the weekend, causing further problems to the already wet canola crops. The adverse weather situation in western Canada was expected to remain a supportive price influence. The uncertain production prospects should also keep farmers as reluctant sellers, until they get a better handle on their yield potential, said traders.

Calls for a slightly firmer start in CBOT soybeans, along with overnight gains in Malaysian palm oil futures, were also expected to lend some support to canola.

The Canadian dollar was only slightly stronger early in the day, providing little direction for canola.

About 230 canola contracts had traded as of 8:42 CDT.

Western barley futures were untraded and unchanged early in the day.

Prices in Canadian dollars per metric ton at 8:42 CDT: