ICE Canola Down On Big US Soy Decline

Canola saw a light trade with only small amounts of intermonth spreading.

The total canola volume was estimated at 8,298 contracts, up from Wednesday’s 8,117 contracts.

Canola saw a choppy trade overnight with prices bouncing around Wednesday’s close. The weakness in international vegetable oil prices weighed on the market with the market bouncing up on the lack of selling pressure, traders said. Canola ended the day mainly a bit lower.

Canola was pressured down by the steep slide down in CBOT soy complex values and the advancing harvest in Western Canada. Also weighing on the market was the sluggish export pace and the continued uncertainty surrounding canola export sales to China due to blackleg infestations, analysts said.

However the market received support from a soft tone in the Canadian dollar, friendly technical signals, slow farmer selling and ideas that Wednesday’s losses were overdone.

Exporters were noted pricing some old sales with Japanese pricing also evident. Crushers were light buyers with small short covering noted by commodity funds. The selling came from commercials and commission houses.

Western barley ended higher in light trade. The lack of farmer selling and light feed lot demand accounted for the small gains amid a lack of news. The weak tone in CBOT corn maintained selling pressure on the market. However brokers noted the lack of speculative participation in the contract
was keeping barley from reacting to the recent slide in CBOT corn.

The total barley volume was estimated at 37 contracts, down from 164 contracts on Wednesday.

Prices are in Canadian dollars per metric ton: