ICE Canola Eases On Lack Of Buying Interest, Firm C$

Overnight losses in Malaysian palm oil futures and Chinese rapeseed values weighed on canola prices, as did moderate declines in crude oil futures.

The strength of the Canadian dollar was a key undermining influence for the market as well, with continued strength expected to limit the upside in canola as trade progresses.

Tempering early losses in canola, however, were small gains in e-CBOT soybeans, traders said.

Further providing a floor for the market were higher opening calls for soybeans with the start of North American trade in Chicago. Opening gains are expected to range from 7 to 10 US cents a bushel, according to market watchers.

Yesterday’s weekly crop progress report showing US soybean planting at 6 per cent completed versus the 11 per cent average was neutral for North American oilseeds, brokers said. While progress is lagging last year’s pace, support was muted by ideas that farmers will make decent headway this week.

On Tuesday, the canola market will be underpinned by friendly technical signals and talk that Argentina’s soybean crop may fall short of downwardly revised forecasts.

However, significant chart resistance, improved planting conditions in much of western Canada and sluggish commercial demand will be bearish for the market, brokers said.

Trade in canola may be choppy given the competing price influences, especially if volumes remain on the light side, they said.

As of 9:00 CDT, only 523 canola contracts had been traded.

There were no western barley contracts traded as of 9:00 CDT, leaving contracts unchanged from Monday’s settlements.

Prices in Canadian dollars per metric ton at 9:00 CDT: