ICE Canola Falls With US Soy

Canola saw a moderate trade with intermonth spreading contributing to the volumes.

The total canola volume was estimated at 9,505 contracts, down from Thursday’s 9,671 contracts, including an estimated 2,250 contracts involved in the spread trade.

Canola was mixed in the overnight trade in very small volumes with export demand giving some support while the weak tone in Malaysian palm oil markets weighed on values. Canola values remained narrowly mixed with a firm tone as the North American trading session opened with the early morning US Department of Agriculture soybean supply-demand report largely viewed as neutral. When the US soy complex opened and turned down, canola followed it ending lower.

Canola was pressured down to 6 week lows by the declines in the CBOT soy complex, the advancing canola harvest and no significant frost in the forecast for the next week.
The firm Canadian dollar and bearish technical signals contributed to the decline, trader said.

However, canola’s losses were not as large as the US soy market as selling pressure was limited, said analysts. Farmer selling is light as producers concentrate on the harvest. Also contributing support was this week’s pick up in export demand. With the canola crop still vulnerable, frost is also contributing some support with light frost reported overnight in the Red Deer area of Alberta, said traders.

Routine exporter and crusher buying met commercial selling and speculative offerings.

Western barley ended higher in light trade. The Oct contract was boosted by short covering on the need for traders to exit the contract. The Nov contract drew its support from end user demand and the lack of country movement. Cash dealers noted that farmers are storing their barley because of the poor cash bids.

The total barley volume was estimated at 380 contracts, up from 23 contracts on Thursday, including an estimated 186 contracts involved in the spread trade.

Prices are in Canadian dollars per metric ton: