ICE Canola Drops On Weak CBOT Soybeans, Profit-taking

Activity was described as light with volumes confined to the nearby November, January and March contracts.

Some of the activity in canola was believed to be positioning ahead of next week’s supply/demand update from the USDA. On August 12 the USDA will release production estimates for this year’s soybean and corn crops.

Losses in canola early in the session reflected the declines seen in Malaysian palm oil futures overnight. The losses in canola were amplified when CBOT soybeans and soyoil values moved lower with the start of the North American day session, brokers said.

The absence of fresh export demand contributed to some of the selling interest that surfaced in canola with profit-taking by a variety of market participants also adding to the bearish price sentiment, traders said.

The losses in canola were being tempered by a pull-back in the value of the Canadian dollar and by continued uncertainty over the condition of the canola crop in western Canada. The threat of an early frost continues to remain high and was helping to keep a bit of a weather premium in the market, traders said.

The pricing of old export business to Japan and Mexico was also seen as an underpinning influence, brokers said.

There were an estimated 2,723 canola contracts traded at 10:42 CDT. Of the contracts traded, 750 were spread related.

There were 15 western barley futures traded as of 10:42 CDT. Light commercial offerings in the absence of willing buyers allowed barley values to be pushed down, brokers said.

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