ICE Canola Firms On Export Pricing

Canola saw a moderate trade with intermonth spreading accounting for a third of the volume.

The total canola volume was estimated at 9,067 contracts, down from Monday’s 15,109 contracts, including an estimated 3,374 contracts involved in the spread trade. .

Canola was higher in the overnight market, prompted by a firm tone in international vegetable oil prices. Canola held onto its gains as the North American trading session got underway and the Chicago Board of Trade soy complex posted small gains. Canola saw a choppy session ending mainly a bit higher.

Canola was pressured down throughout the day by the advancing harvest, the firm Canadian dollar and bearish technical signals, analysts said. Country movement was steady and that maintained downward pressure on the market throughout the session in the light volumes.

Underpinning the market and pulling prices to small gains near the close was the pricing of a sale of canola to China at about the C$385 per metric ton level in the Nov contract. Firm cash market basis levels, despite the advancing harvest, contributed to strength as over 500,000 metric tons of canola are scheduled to be exported through the west coast of Canada in September which is keeping the basis levels at a premium to futures.

Frost this past week has had little negative impact on the crop say traders. Weather forecasts through the end of the week only have some minor frost threats for western Canada.

Exporter and crusher buying met selling from elevator companies, commercials and commodity funds.
Funds were adding to their short positions in the Nov contract.

Western barley ended a bit lower in light trade. End user demand met some light country selling leaving prices marginally lower, brokers said. The firm tone in CBOT corn provided only minor support to the market.

The total barley volume was estimated at 72 contracts down from 50 contracts on Monday.

Prices are in Canadian dollars per metric ton: