ICE Canola Falls On Outside Losses, Planting Progress

Losses in canola prices were influenced by the weakness overnight in e-CBOT soybean futures as well as declines in Malaysian palm oil and European rapeseed values, brokers said.

Overnight selling in global equities and losses in crude oil futures added to the bearish tone in canola.

Expectations that Chicago grains and oilseeds will be undermined Tuesday by the good planting progress made over the Memorial Day long weekend further stoked overnight selling interest in canola, traders said. CBOT soybeans are called 8 to 10 US cents a bushel lower at the start of trade.

For the remainder of the trading day, improved canola planting progress in parts of western Canada and weather maps showing warmer, drier weather this week will weigh on the market.

The lack of fresh export business will also undermine prices, market watchers said.

However, the early weakness in the Canadian dollar and the supportive fundamentals of North American oilseeds will underpin canola prices. A slow pace to farmer deliveries and commercial buying will provide a floor for the market as well.

Brokers noted North American equities had turned higher and said further strength in those markets would benefit canola.

Canola was seeing moderate interest so far on Tuesday, with 1,111 contracts having been traded as of 9:02 CDT.

In the western barley market prices were higher but only one contracts had changed hands as of 9:02 CDT.

Prices in Canadian dollars per metric ton at 9:02 CDT: