ICE Canola Down On Harvest Pressure, Strong Canadian Dollar

Grain companies were the major sellers, according to a broker who said farmers were increasing their sales in the country as the harvest moves forward. Weather conditions were ideal for harvesting the last of the canola crop over the weekend, and forecasts are calling for that good weather to continue through this week, said the broker.

In addition to the harvest pressure, the strong Canadian dollar was also "not helping canola," said the broker. The currency was up by more than a cent and a half compared to the US dollar by midsession, making canola more expensive to exporters.

The uncertainty of future business to China, with the country’s blackleg restrictions slated to come into effect November 15, also continued to overhang the canola market, said market participants.

However, gains in the CBOT soy complex limited the downside in canola. The broker said the advances in soyoil and soymeal were helping crush margins improve, despite the stronger Canadian dollar, which was accounting for some demand from domestic crushers in the canola market.

Fund participants were largely on the sidelines, according to the broker. He thought the speculative traders were waiting for Tuesday’s USDA supply/demand reports to provide some more direction.

At 10:47 CST, about 9,200 canola contracts had changed hands.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:47 CST: