ICE Canola Falls On Harvesting, Weak US Soy

Canola saw a moderate trade with only light intermonth spreading noted.

The total canola volume was estimated at 8,660 contracts, up from Thursday’s 8,214 contracts, including an estimated 1,558 contracts involved in the spread trade.

Canola was a bit higher in the overnight market as international vegetable oil prices were higher for the bulk of the night session and the Canadian dollar was weaker. Canola turned lower as the North American trading session got underway and the CBOT soy complex posted losses.

Canola was pressured down by the weakness in CBOT soy complex futures, brokers said. The advancing harvest also weighed on prices as did weather forecasts for near ideal harvesting conditions through the end of next week in northern Saskatchewan where the harvest is seeing the biggest lag.

Sluggish demand and the continued uncertainty about export sales to China contributed to the declines as did a more bearish technical picture.

Giving some support was the weakness in the Canadian dollar and slow farmer selling, traders said.

Export short covering and light crusher buying met commercial and speculative selling.

Western barley futures ended mainly a bit lower in light mostly commercial trade. The weak tone in CBOT corn and sluggish demand allowed prices to edged down with the lack of farmer selling keeping the market from dropping very far, said traders.

The Nov contract rallied on short covering as traders need to exit the contract before it is de-listed by the exchange.

The total barley volume was estimated at 63 contracts, up from 36 contracts on Thursday.

Prices are in Canadian dollars per metric ton: