ICE Canola Down On Slow Demand, Weather

Canola saw a light trade with modest amounts of intermonth spreading evident.

The total canola volume was estimated at 7,257 contracts, down from Thursday’s 8,319 contracts, including an estimated 1,896 contracts involved in the spread trade.

Canola was narrowly mixed in the overnight trading session as the firm tone in international vegetable oil prices was balanced off by technically based selling.
Canola was little changed as the North American trading session got underway and bounced to both sides throughout the trading session.
Canola futures turned lower in the last hour of trade,
ending Friday with modest losses.

Canola was pressured down by sluggish demand, as news that the Ukraine sold 3 cargoes of rapeseed to China this week and the fact that French rapeseed was priced under canola, weighed on values.

Weather conditions are forecast to be favourable into next week and that also pressured prices down.
"With the crop late, every week we go by without frost is good news," said a trader. Bearish technical signals also prompted some of the selling pressure.

Underpinning the market was the lack of farmer selling with cash dealers indicating that the only country movement is a result of cash flow demands. The weak Canadian dollar and lingering concerns about frost in western Canada, after areas near Edmonton Alberta and in northwestern Saskatchewan Wednesday night received a touch of frost, also gave some support.

Exporter and crusher buying met commercial selling with crushers noted sellers.

Western barley ended lower in light commercial activity. The market was pressured down by the steep losses in US corn and sluggish demand due to herd liquidation and the import of cheap US feed products, traders said.

The total barley volume was estimated at 23 contracts, down from 88 contracts on Thursday, including an estimated 12 contracts involved in the spread trade.

Prices are in Canadian dollars per metric ton: