ICE Canola Firms As CBOT Soybeans Climb

Gains overnight in the outside markets also contributed to the strength displayed by canola, brokers said. The advances in the outside markets included global crude oil, the equity sector and higher Malaysian palm oil futures.

Support in canola also came from the reluctance of producers to deliver into the cash pipeline and from continued concerns over weather related stress to canola fields in western Canada.

Traders said canola crop estimates currently range from as low as 9.0 million metric tons to around 10.0 million tons. During the 2008/09 (Aug/Jul) crop year, Canada produced 12.643 metric tons of canola.

Support in canola was also coming from the pricing of old export business and from sentiment that the recent declines in canola were overdone and that values were in need of an upward correction, brokers said.

Some support in canola was also tied to the absence of commodity fund liquidation, which had been anticipated in the November contract at some point in the session, traders said.

The upside in canola was being limited by the absence of fresh export business being put on the books and by the rally seen in the Canadian dollar Tuesday.

The good growing conditions for the US soybean crop was also viewed as an undermining price influence for canola, traders said.

There were an estimated 1,247 canola contracts traded at 10:50 CDT. Of the contracts traded, 108 were spread related.

There were 95 western barley futures traded as of 10:50 CDT. Sluggish demand and the absence of willing buyers allowed barley values to ease4, brokers said.

Prices in Canadian dollars per metric ton at 10:50 am CDT: