ICE Canola Eases on Poor Demand, CBOT Weakness

Activity was described as quiet with some participants taking to the sidelines to await Friday’s crop production update from Statistics Canada.

Most of the action so far in canola, has taken place in the November, January and March futures.

Losses overnight in the e-CBOT soybean complex helped to weigh on canola early. Bearish technical signals contributed to the losses seen in canola with many participants anticipating commodity fund sell-orders before the end of the session, traders said.

The absence of fresh export demand for canola helped to weigh on canola. Traders noted there were ideas canola was overpriced in comparison to other oilseeds.

Adding to the weakness in the canola were the mostly favourable growing conditions in western Canada, brokers said. However, they also cautioned that canola values would be lower if frost concerns would be taken out of the weather forecast.

Some underlying support in canola was coming from the slow pace of farmer deliveries into the cash market and from the pricing of old export business, traders said. Commercials were the featured buyers.

There were an estimated 4,810 canola contracts traded at 10:34 CDT. Of the contracts traded, 846 were spread related.

There were no western barley futures traded as of 10:34 CDT.

Prices in Canadian dollars per metric ton at 10:34 am CDT: