ICE Canola Firm In A Choppy Trade

Canola saw a large volume with the bulk of the activity being intermonth spreading as commercials rolled January futures forward into the March contract, traders said. Outright trading volumes were better than Monday but the numbers were still light, they said.

The total canola volume was estimated at 11,806 contracts with the intermonth spread activity at 11:05 CST over 9,000 contracts.

Canola was supported by the firm tone in the CBOT soy complex, the weak Canadian dollar
and the lack of farmer selling as frigid temperatures in western Canada continue to keep canola bins shut tight, said traders.

Canola was felt to be well priced in the international oilseed markets, although some traders felt canola had still not reached the discount needed to stimulate export demand.

Activity was choppy and continued to trade in a narrow range with little fresh news in the market. Technically, the market has given no signals of when and where it will break out of its current levels, analysts said. However, they did note that the rise in open interest in the past week suggests something is about to happen.

Weighing on the market was a slower demand pace as we approach the end of the year and ideas that canola supplies in western Canada are ample. The continued uncertainty about canola exports to China due to Blackleg infestation was considered a minor bearish feature of the trade.

Commercials have been the main traders today with some local participation as they jump in and out of the trade and scalp the market, said brokers.

Western barley was untraded and unchanged amid alack of interest.

Prices at 11:15 CST in Canadian dollars per metric ton: