ICE Canola Firm On US Soyoil

Canola saw a light to moderate trade with intermonth spreading enhancing the volumes. Trade was felt to be surprisingly subdued as traders noted that "you never know about the beginning of the year".

The total canola volume was estimated at 9,826 contracts, up from Thursday’s 9,390 contracts, including an estimated 3,810 contracts involved in the spread trade.

Canola was mainly higher in the overnight session reflecting firmness in international vegetable oil markets with palm oil and soyoil seeing solid gains, said traders. Canola extended its gains as the North American trading session began and the CBOT soy complex posted a very strong opening. Canola followed the CBOT soybean market with canola ending with small gains in a very choppy closing trade, brokers said.

Canola drew the bulk of its direction from the CBOT soy complex, particularly soybean oil, said traders.
Contributing to early strength was slow farmer selling, friendly technical signals and very strong crude oil markets, said traders. However, limiting the advance in canola was the exceptionally strong Canadian dollar and sluggish demand with both exports and the crush running behind last year’s pace, analysts said.

Crushers were strong buyers early in the day with only routine exporter buying noted. Speculative buying was evident early which took the canola market to its highs of the session early in the day. Capping the advance was commercial selling with light elevator company selling also noted.
Profit taking also developed as the US soy complex drifted back from its highs.

Western barley was unchanged and untraded amid a lack of interest in the market.

Prices are in Canadian dollars per metric ton: