ICE Canola Falls In Slow Demand

Canola saw a moderate trade with intermonth spreading accounting for over half the trade as commodity funds continued to roll positions ahead of the end of the month. "Outright trade was pathetic today", said one trader

The total canola volume was estimated at 11,191 contracts, down from Tuesday’s 11,710 contracts, including an estimated 7,592 contracts involved in the spread trade.

Canola was modestly higher in the overnight market on firmness in international vegetable oil prices. Canola held onto its gains as the North American trading session opened despite a choppy tone in the Chicago Board of Trade soybean market. Canola turned lower about
11:00 CDT with canola ending the session with modest losses.

Canola was pressured down by the weak tone in CBOT soyoil futures, the large canola crop, bearish technical signals, steady farmer selling and sluggish demand, traders
said.

Reports of more canola meal shipments being halted at the US border due to salmonella contamination weighed on prices as it is expected to cut into crusher demand.

Technically based traders are expecting to see the Nov contract drop to the C$350 per metric ton level. Farmer advisory services are also telling their farm clients to use any rally as a pricing opportunity.

Underpinning the market was rain halting the harvest, talk of some fresh export bookings and the weak Canadian dollar, analysts s said. Exporters did not confirm any fresh sales. The late rally in CBOT soybeans pulled canola back to small losses.

Exporter pricing was augmented by light crusher buying while the selling came from commercials and speculators.

Western barley ended lower in light trade. Seasonal harvest pressure and lackluster end user pricing pushed the market to small losses, brokers said.

The total barley volume was estimated at 41 contracts, down from 280 contracts on Tuesday.

Prices are in Canadian dollars per metric ton: