ICE Canola Edges Higher On Follow-Through Buying

With the US markets closed for the Independence Day long weekend, activity in the canola market was relatively subdued and choppy, according to a broker. He said most of the buying interest was tied to follow-through exporter pricing of routine business.

The ongoing weather concerns also remain a supportive price influence, underpinning the market, with excessive moisture a concern in many areas and dryness also starting to cause problems in the Peace River region of Alberta, according to traders.

Farmer hedges remain on the light side, given the production uncertainty, said the broker.

A slightly weaker tone in the Canadian dollar was also supportive for canola.

Technical resistance tempered the upside in canola, although most fund traders were on the sidelines Monday, according to the broker.

Overnight declines in Malaysian palm oil futures, and the weaker tone in crude oil, also put some downward pressure on canola.

At 10:44 CDT, about 1,310 canola contracts had changed hands, with the November/January a feature of that activity.

Western barley futures were steady to higher at midsession, with all of the 42 contracts traded confined to the nearby July contract. Participants were said to be exiting the front month rather than take deliveries.

Prices in Canadian dollars per metric ton at 10:44 CDT: