ICE Canola Drops On CBOT Soybean Losses, No Frost

The nearby November, January and March contracts were the mostly actively traded.

Canola futures had traded in a mixed range overnight, although the bias was to the upside. Pricing of new export business that was concluded this week had provided some early support with the absence of producer offerings also generating some minor support, brokers said.

Some of the early gains in canola had also come in anticipation of a higher start in CBOT soybean futures with the start of the North American day session, traders said.

However, when CBOT soybean and soyoil values opened lower sell orders were triggered in canola, taking prices mostly lower. The losses in canola were amplified when the sell-off in both soybean and soyoil increased.

Contributing to the weakness in canola was the advancing canola harvest in western Canada with the lack of a frost in the weather outlooks adding to the bearish price sentiment, brokers said.

The potential for a large soybean harvest in the US also provided canola with some weakness.

Firmness in the Canadian dollar Friday morning was also viewed as an undermining price influence.

Helping to slow the price drop in canola was steady domestic crusher demand and the disappearance of willing sellers, traders said.

There were an estimated 3,463 canola contracts traded at 10:42 CDT. Of the contracts traded 350 were spread related.

There were 100 western barley futures traded as of 10:42 CDT. All of the contracts traded were spread related.

Prices in Canadian dollars per metric ton at 10:42 am CDT: