ICE Canola Falls On US Soy Losses

Canola activity was heavy with intermonth spreading
accounting for much of the volume, traders said.

The total canola volume was estimated at 22,272 contracts, up from Tuesday’s 17,755
contracts, including an estimated 15,010 contracts involved in the spread trade.

Canola was lower for the bulk of the overnight session in the wake of a soft tone in international vegetable oil markets. Canola firmed a bit as the North American trading session got underway and the CBOT soybean market opened higher. However as the US market dropped off, canola prices moved lower with prices ending with moderate losses.

Canola was pressured down by the weak tone in the CBOT soy complex, particularly the steep decline in soyoil futures, analysts said. The firm Canadian dollar contributed to the weakness.

However, traders noted that the canola market outperformed the US market and did not show as large a decline. The lack of farmer selling, strong crush margins and ideas that canola is fairly priced in the export markets gave support, restraining the price slide.

Exporter and crusher buying was augmented by speculative buying. The selling was mainly commercial.

Western barley ended lower . Trade was light and commercially dominated as the market was pressured down by the weakness in CBOT corn futures and sluggish fresh end user demand, brokers said.

The total barley volume was estimated at 120 contracts, up from 44 contracts on Tuesday.

Prices are in Canadian dollars per metric ton: