ICE Canola Eases On Anticipated CBOT Weakness

The closure of the CBOT grain and soybean market for the US Independence Day holiday was linked to the lack of participation.

"Some of the selling that has surfaced in those canola contracts are tied to ideas that the weather for the development of the US soybean crop has been very good and that CBOT soybean futures will open lower on Monday," a broker said.

The absence of fresh demand from the export sector was also being viewed as an undermining price feature in canola. Some light chart related liquidation helped to weigh on canola, brokers said.

Losses overnight in overseas vegetable oil markets contributed to some of the early selling of canola.

Canola is expected to continue to move to lower ground during the remainder of the session Friday in extremely light activity. Weighing on the market will be showers moving through some of the driest areas of Alberta and Saskatchewan. Traders indicate that, at best, the showers will only stave off the dryness problems for another day and will not eliminate the drought.

The concerns about the condition of the canola crop in the western half of the Canadian prairies was providing a floor for prices, traders said. The absence of moisture is believed to have cause germination problems in many of the canola growing regions of Saskatchewan and Alberta, they said.

Light exporter pricing of old business was also helping to slow the price drop in canola. Producers also continue to be reluctant sellers of canola into the cash market, which has also limited the downward price slide.

There were an estimated 166 canola contracts traded at 11:10 CDT. Of the contracts traded, 20 were spread related.

There were 3 western barley futures traded as of 11:10 CDT.

Prices in Canadian dollars per metric ton at 11:10 am CDT: