ICE Canola Finds Support From CBOT Soybean Gains

Small gains overnight in Malaysian palm oil helped to underpin canola futures with routine pricing of old export business also fuelling some of the upward price action.

Advances in the North American equity markets were also helping to bring in some fresh speculative demand for canola, brokers said.

The rolling out of long positions in the nearby July future and into November was a feature of the activity and helped to bolster the volume total in those contracts, traders said.

Some end-of-month position evening was also evident and helped to generate some of the price activity.

Sentiment that the nearby canola contracts were oversold and in need of an upward correction, also sparked some minor buying interest.

The upside in canola was being limited by the strong Canadian dollar. A slow down in demand from domestic processors and the lack of fresh export business being put on the books helped to weigh on canola futures, brokers said.

Market participants were also keeping a close eye on acreage, with many of the view that seeded area will be well above Statistics Canada`s current 14.9 million acre projection, brokers said.

Improved weather conditions for planting operations in the eastern regions of the Canadian prairies also helped to temper the advances in some contracts, traders said.

There were an estimated 4,858 canola contracts traded at 10:40 CDT.

At 10:40 CDT, 20 western barley futures had changed hands. Light commercial offerings and continued poor demand allowed the nearby July future to be pushed down, brokers said.

Prices in Canadian dollars per metric ton at 10:40 am CDT: