ICE Canola Down On Profit-Taking, Weaker Soy

With calls for a weaker start in the CBOT soy complex, traders expected the canola market would also remain pointed lower.

While ongoing concerns about slow crop development in western Canada should lend some underlying support to canola values, traders noted that growing conditions are generally thought to be favourable across North America as a whole.

Activity could be choppy in the agricultural markets as participants square their positions and move to the sidelines ahead of next week’s USDA crop report. On August 12 the USDA will release production estimates for this year’s soybean and corn crops.

The Canadian dollar was slightly weaker Thursday morning, which should provide some support for canola. Farmers were also expected to remain reluctant sellers, further limiting the downside.

About 670 canola contracts had traded as of 8:50 CDT, the bulk of that in the November futures month.

Western barley futures were untraded and unchanged in overnight activity, but could be headed lower given the calls for a weaker start in CBOT corn.

Prices in Canadian dollars per metric ton at 8:50 CDT: