ICE Canola Drops On CBOT Soybean Weakness

Losses in Malaysian palm oil futures overnight and a mildly bearish supply/demand report for US soybeans from the USDA early Friday morning helped to spark some of the downward price movement seen in canola, brokers said.

The subsequent declines in both CBOT soybean and soyoil futures helped to spark additional selling in canola.

Crop reports released this week from various outlets have all pointed to some improvement in crop conditions and moisture levels in western Canada and that has helped to spark some selling interest, a broker said.

The advancing rapeseed harvest in the Ukraine and the increased availability of oilseeds on the global market were also viewed as an undermining price influence for canola, traders said.

The good weather for the development of the US soybean crop helped to spark some selling in canola as some leftover liquidation orders, brokers said.

The losses in canola were being tempered by a downturn in the movement of the commodity into the cash pipeline and by bouts of short-covering ahead of the weekend.

The pricing of old export business helped to slow the price drop in canola. News that China continues to be an exceptional buyer of US soybeans also sparked ideas that some Canadian canola sales have also been made, brokers said.

However, a forecast from the Canola Council of Canada at an oilseed conference in Beijing overnight predicting lower canola exports to China, due mainly to smaller supplies, helped to offset that enthusiasm, traders said.

There were an estimated 2,931 canola contracts traded at 10:54 CDT. Of the contracts traded, 130 were spread related.

There were 100 western barley futures traded as of 10:54 CDT. Light liquidation from commercials and the absence of willing buyers allowed barley futures to be pushed down, brokers said.

Prices in Canadian dollars per metric ton at 10:54 am CDT: