ICE Canola Falls On Weak Vegoils

Canola saw a moderately active trade with intermonth spreading accounting for over half the volume.

The total canola volume was estimated at 12,861 contracts, down from Wednesday’s 15,999 contracts, including an estimated 6,568 contracts involved in the spread trade.

Canola was lower in the overnight market, reflecting steep declines in Malaysian palm oil and losses in crude oil. Canola maintained those declines as the North American trading session began and the Chicago Board of Trade soy complex opened lower. Canola ended with modest declines.

Canola was pressured down mainly by profit taking after the market hit 8 month highs this week and demand started to slow. The absence of fresh export demand and eroding crush margins have resulted in a slower demand pace. The steep declines in international vegetable oil prices and weakness in Thursday’s CBOT soyoil values maintained selling pressure over canola.

Improved weather for canola planting, a firm Canadian dollar and bearish technical signals also contributed to the softer tone. Farmer selling was steady.

However, underpinning the market and holding losses to small levels was the firm tone in CBOT soybean futures and the stronger than normal spring time demand, traders said.

Routine exporter and crusher pricing was evident with commercial pricing continuing to be noted in the Nov contract. The selling comprised of speculative profit taking, mainly from commission houses, and exporter liquidation selling in the July contract. Light elevator company selling was noted as farmer selling has accelerated in areas where planting is finished and cash bids remain well over C$10.00/bu, cash dealers noted.

Western barley ended higher
in light commercial trade. Prices turned higher near the close as some light end user buying boosted the market amid a lack of selling, brokers said.

The total barley volume was estimated at 130 contracts, up from 107 contracts on Thursday, inclduing an estimated 26 contracts involved in the spread trade.

Prices are in Canadian dollars per metric ton: