ICE Canola Down On CBOT Declines, Reduced Frost Threat

The nearby November, January and March contracts were the most active contracts.

Skepticism among market participants about frost hitting the canola crop in western Canada next week helped to spur some selling. Revised weather outlooks in the US, also reducing the chances of frost hitting the US soybean crop, contributed to some of the selling interest, brokers said.

Losses in European rapeseed futures overnight sparked some of the weakness in canola with the losses in CBOT soybean and soyoil with the start of the North American day session adding to the bearish price sentiment.

Warm temperatures across western Canada at present have been helping crop maturity as well as harvest operations, brokers said, noting that this was being viewed as an undermining price influence.

The losses in canola were being tempered in part by light commercial demand, some
of which was believed to be covering domestic crusher needs, traders said. The pricing of old export business and the slow pace of farmer deliveries into the cash pipeline also offered some minor support.

There were an estimated 3,515 canola contracts traded at 10:40 CDT.

There were 54 western barley futures traded as of 10:40 CDT. The buying back of previously sold positions by a variety of market participants helped to spark the upside in the nearby October future, brokers said. The upside was being limited by the losses in CBOT corn futures.

Prices in Canadian dollars per metric ton at 10:40 am CDT: