ICE Canola Eases Slightly In Thin Overnight Trade

Buying was further discouraged by canola’s inability Wednesday to follow Chicago soybeans higher as well as the considerable strength of the Canadian dollar, market watchers said. The currency was once again edging towards the 90 US cent mark in early trade.

Slightly weaker opening calls for CBOT soybeans added to the weight on canola prices.

Canola contracts turned mixed, however, as crude oil prices climbed higher and North American equities showed signs of strength.

For the remainder of the trading session, canola will be pressured by ideas that acreage in western Canada could be much higher than the 14.99 million acres indicated in Statistics Canada’s April planting intentions report, brokers said.

Fears about slowing export demand and increased farmer selling will also be bearish the market, traders said.

The rolling of long positions out of the nearby July contract into deferred months is expected to be a feature of the trade Thursday, market watchers said.

Volumes in canola were light, with most of the interest only appearing ahead of the opening of North American trade in Chicago. As of 9:06 CDT, 933 canola contracts had changed hands.

In the western barley market, a lack of interest left contracts untraded and unchanged as of 9:06 CDT.

Prices in Canadian dollars per metric ton at 9:06 CDT: