ICE Canola Down On Lack Of Buying Interest

A canola broker described the market activity in canola as relatively neutral on Monday, with buyers generally on the sidelines, but sellers also starting to back away.

Farmer hedges accounted for some of the weakness in canola, as the harvest moves forward across western Canada. However, the broker said that selling was also slowing down, as producers hold out for better prices.

Gains in CBOT soybeans were providing some spillover support to canola, limiting the downside, according to traders.

The broker said canola is looking relatively cheap, and the need to ration some demand should temper any declines. He said technical support was also holding, with the November contract still sitting well above C$430 per metric ton.

At 10:48 CDT, about 4,300 canola contracts had changed hands, with intermonth spreading only a small feature.

Western barley futures were untraded and unchanged.

Prices in Canadian dollars per metric ton at 10:48 CDT: