ICE Canola Down On US Soy Collapse

Canola saw a moderate volume with intermonth spreading augmenting the activity. Commercials and funds continued to dominate the spread activity.

The total canola volume was estimated at 10,877 contracts, down from 16,765 contracts on Wednesday.

Canola was lower in the overnight market, reflecting weakness in overnight US soybean markets. Canola turned higher as the North American trading session got underway amid sluggish selling and routine demand. Canola ignored a weak tone in the Chicago Board of Trade soybean market for most of the session, but eventually turned down when the US soy market dropped near the close.

Canola was supported for most of the session by ideas that the recent decline in futures prices was overdone and the market was due for a bounce higher with the lack of farmer selling contributing to the gains. Also giving support was the strong upward surge in crude oil and concern about dry conditions in western Saskatchewan and parts of Alberta, traders said.

The gains in canola were restrained by
a slowing pace to export and crush demand and the continued firmness of the Canadian dollar, analysts said. Canola turned lower in the last 10 minutes of trade as old crop soybeans tumbled.

Routine exporter and crusher pricing met commercial selling with elevator companies only light sellers. Farmer selling has slowed as cash prices have declined.

Western barley ended mixed in active trade. Intermonth spreading enhanced the volume as commercial liquidation selling in the July contract sent those futures lower.

The total barley volume was estimated at 1,114 contracts, up from 395 contracts on Wednesday.

Prices are in Canadian dollars per metric ton: