ICE Canola Down On US Soy, Firm C$

Canola volumes were on the light side as only 3,717 contracts had traded by 10:39 CDT. Intermonth spreading was light.

Canola started the North American session higher in the wake of a firm tone in CBOT soybean futures. However when new crop soybeans turned lower, the canola market worked down as well.

Canola losses were greater than the US soy decline as the firm Canadian dollar and the sluggish pace to fresh demand weighed on prices. Forecasts for favorable growing conditions through the end of the month also weighed on values, analysts said.

However, the market did receive some support from slow farmer selling, a firm tone in CBOT soyoil futures and lingering uncertainty about the crop as a result of the poor growing season this year, traders said. The uncertainty about the crop is felt to have sidelined participants as they try to get a handle on crop size and quality.

"Lots of people just sitting on the sidelines right now waiting to see what kind of crop they will have for sale," said a trader.

Crushers and exporters accounted for the demand with the export buying felt to be pricing of previously made routine sales. The selling is mainly commercial.

Western barley posted losses in very light trade. Liquidation in the Oct contract pressured that contract lower. Weakness in the cash market in southern Alberta contributed selling pressure in the Nov contract, although no activity has occurred so far, brokers said.

The total western barley volume as of 10:49 CDT was 15 contracts, all in the Oct futures.

Prices at 10:50 CDT in Canadian dollars per metric ton: