ICE Canola Firm, But Range-Bound

The relatively firm tone in canola came despite weakness in the CBOT soy complex.

A trader said there was some exporter pricing in the market, with the buyers looking to price some business to China before the blackleg restrictions come into place November 15. The requirements from China that all canola shipments be certified as free of blackleg will effectively shut Canadian canola out of the Chinese market until a resolution to the situation is found.

The trader thought canola was a little overdone to the downside on Wednesday and was likely seeing some consolidation on Thursday, which accounted for the steady tone in the market.

Farmers have finally seen a good window of harvest opportunity in western Canada, which should limit the upside in canola, said the trader. Although, he said the hedges were not yet finding their way to the futures market.

The Canadian dollar was holding steady at midsession, providing little direction for canola.

At 10:51 CST, about 4,450 canola contracts had changed hands.

Western barley futures were steady to higher with only 15 contracts traded by midsession. While the January contract was posting slight gains, the trader expected the increasing feed grain supplies in western Canada, with the continuation of the harvest, would limit any upside.

Prices in Canadian dollars per metric ton at 10:51 CST: