ICE Canola Down With US Soyoil

Trade was heavy with intermonth spreading enhancing the volumes.

The total canola volume was estimated at 15,932 contracts, up from Monday’s 13,575 contracts, including an estimated 8,810 contracts involved in the intermonth spread activity.

Canola futures were higher in the overnight market, reflecting a firm tone in international vegetable oil markets. Canola initially extended its gains as the North American session began and the CBOT soy complex rallied. However, as the US soy market weakened canola turned lower ending the session with just small losses.

Canola was pressured down by a slowing pace to fresh export demand, the losses in CBOT soyoil futures and continued jitteriness surrounding the swine flu problems, brokers said.

Giving support and keeping canola losses much smaller than the US market was pricing of previously made sales to China, ideas that Monday’s losses were overdone, a slower pace to farmer selling and friendly technical signals.

Exporters were strong buyers early with crusher buying also noted.
Commodity funds were also buyers early in the day but they turned sellers as the session progressed. Exporter selling also appeared later in the session. Farmer selling was light but steady.

Western barley posted losses in light trade. The lack of interest in the market allowed prices to fall "easily" said brokers.

The total barley volume was estimated at 153 contracts, up from 106 contracts on Monday.

Prices are in Canadian dollars per metric ton: