ICE Canola Edges Lower on Profit-Taking

Market watchers said scale up hedge selling by grain companies was taking values lower. Canola producers in Alberta were reportedly getting C$13/bu for canola based on a deferred delivery basis, which was stimulating the hedging.

Furthering canola’s declines were losses in outside markets. CBOT soybeans, soyoil, Malaysian palm oil, and European rapeseed were all lower in overnight trade.

The Canadian dollar was flirting with parity once again this morning, which was adding to the market’s bearish tone, experts said.

Losses were tempered by continued dry weather in Argentina which is affecting their soy crop, experts said.

Continued strong domestic processor demand for canola was also limiting declines, as was the pricing of old export business for Canadian canola, analysts said.

At 08:30 CST, there had been about 550 canola contracts traded.

Western barley futures were unchanged and untraded early Wednesday.

Prices in Canadian dollars per metric ton at 08:30 CST: