ICE Canola Firm In A Choppy Trade

Canola saw a very small trade due to the US markets being closed for the US Memorial Day long weekend.
There was only light intermonth spread activity.

The total canola volume was estimated at 1,901 contracts, down from 10,737 contracts on Friday, including an estimated 714 contracts involved in the spread trade.

Canola was narrowly mixed to lower in the overnight trade as the weak tone in Malaysian palm oil prices, as they fell 3%, weighed on canola. Canola continued to see thin choppy activity in the North American trading session with the bias to the downside for most of the session. Canola turned higher in the last hour ending with small gains.

Canola was pressured down early by weekend planting activity and weather forecasts for near ideal conditions for the eastern prairies which are seeing the greatest delays in canola planting, traders said. Bearish technical signals and the slowing pace to demand also pressured values down. The weak Canadian dollar gave some minor support, said analysts, noting that the market was still dealing with the huge US$0.04 rally in the Canadian currency against the US dollar last week.

Underpinning the market and boosting prices in the last hour, particularly in the July contract, was the slow pace to farmer selling. Producers have backed away from delivering as cash bids have fallen from recent 7 month highs, cash dealers said. As a result some small commercial demand in the thin trade firmed the market.

Routine pricing by exporters and crushers gave support with commercials the main sellers.
Elevator company selling was noted in the market, but it was classed as very light.

Western barley futures were unchanged and untraded. There was little interest in the market.

Prices are in Canadian dollars per metric ton: