ICE Canola Falls On Weak US Soy In Dull Trade

Canola saw a light to moderate trade with an estimated 7,475 contracts traded s of 11:10 CDT. Limiting activity was Thursday’s Statistics Canada crop production report, said brokers.

Canola posted losses this morning in the wake of the declines in the CBOT soy complex with sluggish demand contributing to the weakness, traders said. Expectations for large canola production in tomorrow’s StatsCan production report also weighed on the market.

The market is also looking to Prime Minister Stephen Harper’s visit to China this week to resolve the dispute between Canada and China over Canadian exports of canola.
"That is front and center on everyone’s mind and we are told it is front and center for the prime minister too," said a trader.

Canola’s losses have been smaller than the US soy complex as the lack of farmer selling is giving support.
"We have definitely entered the Xmas lull as far as farmer selling goes," said a cash dealer.
"We won’t see any significant selling, except for delivery contracts,
till after the New Year," he added.

Also supporting canola has been improved crush margins as crushers have been steady buyers.
"It’s costing them (crushers) more but they are still moving (canola) meal and its going to Asia", said a trade source. Salmonella contamination of canola meal exports to the US has halted
the movement of Canadian canola meal to US destinations, said exporters.

Crushers were the best buyers with routine exporter demand giving support.
Commercials were the main sellers.

Western barley was untraded and unchanged.

Prices at 11:20 CDT in Canadian dollars per metric ton: