ICE Canola Down On Rain, US Soy

Canola saw a moderate trade with intermonth spreading accounting for much of the volume.
Positioning was also noted ahead of Tuesday’s Statistics Canada acreage report. However, traders feel that the report was taken too early to show the acreage shift because of weather problems.

Total canola volume was estimated at 9,905 contracts, up from 7,760 contracts on Friday, including an estimated 6,146 contracts involved in the spread trade.

Canola was lower in the overnight market reflecting weakness in outside markets and the 5.5% drop in the price of palm oil.
Canola continued to see declines as the North American trading session got underway and the CBOT soy complex dropped sharply at its opening. Canola’s decline intensified as the session went on and canola ended with sharp losses.

Canola was pressured down by solid rainfall in much of the dry areas of Saskatchewan and lighter rain for the dry areas of Alberta. Total area affected was estimated at 60% of the dry zone. The steep declines in crude oil and the CBOT soy complex contributed to the price slide as did bearish technical signals.

Giving some support was the big drop in the Canadian dollar, slow farmer selling and ideas that crop damage from the drought was too far gone to benefit from the weekend rains, brokers said. The strong export line up at the west coast of Canada gave some support as well.

Routine exporter and crusher demand was met by commercial selling and light elevator company selling.

Western barley ended lower in light trade. The lack of interest weighed on the market as the new listed revised barley contract attracted no interest.

The total barley volume was estimated at 37 contracts, up from only 1 contract traded on Friday, including an estimated 14 contracts involved in the spread trade.

Prices are in Canadian dollars per metric ton: