ICE Canola Falls On Weak US Soy

Canola saw a moderate volume of trade with much of the activity being intermonth spreading by commercials and funds who are rolling July contracts into the Nov contract.
Traders also said the market felt "tired" after its recent volatility.

The estimated canola volume was 14,734 contracts, up from Friday’s 14,211 contracts, including an estimated 9,722 contracts involved in the spread trade.

Canola was lower in the overnight market as the weakness in international vegetable oil prices prompted selling. Canola maintained those small losses as the North American trading session began and the US soy complex posted declines. Canola ended the day lower.

Canola was pressured mainly by the weakness in the CBOT soy complex and sluggish fresh demand. Eroding crush margins also weighed on the market. Underpinning values were much below normal temperatures in western Canada on the weekend and slow farmer selling, analysts said.

Activity was mainly commercial with routine exporter and crusher buying meeting light elevator company selling. Exporters were noted positioning in the new crop for expected demand.

Western barley ended unchanged in very thin activity with the lack of sellers supporting values, brokers said. They also indicated that interest in barley has generally been sidelined ahead of the introduction of a revised barley contract, announced by ICE Canada last week.

The total barley volume was estimated at 64 contracts, up from Friday’s 39 contracts, inclduing an estimated 34 contracts invovlved in the spread trade.

Prices are in Canadian dollars per metric ton: