ICE Canola Falls On harvest, US Soy

Canola saw a light trade with only small intermonth spread volumes. Activity was subdued ahead of Wednesday’s Remembrance Day holiday which will see the ICE Canada market closed.

The total canola volume was estimated at 6,986 contracts, down from Monday’s 12,847 contracts, including an estimated 904 contracts involved in the spread trade.

Canola values were lower in the overnight trade, prompted by weakness in international vegetable oil markets. Canola continued to see losses as the North American trading session got underway and the CBOT soybean market opened lower. Canola saw very choppy activity, partially because of the thin volumes, traders said. Canola ended with small losses.

Canola was pressured down by declines in the US soy complex and the advancing harvest in western Canada with only areas of Saskatchewan still unharvested, said traders. Contributing to the weakness was the firm Canadian dollar, bearish technical signals and heavier farmer selling.

That heavier farmer selling was coming out of the recently harvested areas of Saskatchewan, said cash dealers.

There was some confusion in the trade following an overnight announcement out of China that they would permit the import of Canadian canola to ports that are not close to rapeseed producing areas. The fact that the Chinese official, who made the announcement, would not allow his name to be used and the inability to get confirmation of the report from Canadian sources restrained activity.

Routine exporter pricing was augmented by crusher pricing.
The selling came from farmers and grain companies.

Western barley was unchanged and untraded amid a complete lack of interest, brokers said.

Prices are in Canadian dollars per metric ton: