ICE Canola Edges Lower On Follow-Through Selling

Calls for a lower start in CBOT soybeans were expected to put some further pressure on canola, according to traders. Malaysian palm oil futures were also lower in overnight activity.

Movements in the outside currency and commodity markets could come forward to provide some direction for canola. On the one hand, the firmer Canadian dollar should keep the bias to the downside. On the other hand, gains in crude oil may provide some underlying support for the oilseeds.

The large South American soybean crop remains a bearish influence on canola, according to traders. However, farmers remain reluctant sellers, and steady end-user demand should provide some support.

From a technical perspective, an analyst said the bias was starting to shift back lower for canola after Wednesday’s weak close, but he said there were also signs that the market may have hit a bottom for the time being.

About 1,500 canola contracts had traded as of 8:53 CST, with the March/May spread a feature.

Western barley futures were steady to lower, with 10 contracts traded by Thursday morning. A general lack of demand for the commodity was behind the weakness.

Prices in Canadian dollars per metric ton at 8:53 CST: