ICE Canola Finds Minor Support From Small Soybean Gains

The market’s minor strength was encouraged by the small advances seen in e-CBOT soybean futures.

Limiting the upside, however, were overnight losses in Malaysian palm oil values, declining crude oil futures and the mixed tone in global equities, market watchers said.

Chicago soybeans are called 1 to 2 US cents per bushel higher at the start of the North American trading session, which could provide additional strength to canola prices as trade progresses.

Good domestic crush margins, steady commercial buying interest, a good export pace and friendly chart signals will underpin canola values Friday, brokers said.

The market will benefit as well from the bullish fundamentals and technical support underpinning Chicago soybean futures.

However, brokers warned that activity in canola could be choppy Friday. Profit-taking ahead of the Victoria Day long weekend in Canada and further losses in crude oil futures may undermine the market.

Continued strength in the Canadian dollar on Friday could limit buying interest as well, they said.

Also, the direction of grain and oilseed prices will depend in part on the direction of North American equities.

Early volumes in canola were light to moderate, with 687 contracts traded as of 9:10 CDT.

Western barley futures, meanwhile, were unchanged and untraded as of 9:10 CDT.

Prices in Canadian dollars per metric ton at 9:10 CDT: