ICE Canola Firms On International Vegoils

Canola saw a moderate level of activity with the bulk of the trade taking place in the 90 minutes before the North American markets opened. As of 08:45 CDT, the estimated canola volume was 1,267 contracts. Evening up is expect ahead of the Canadian long weekend which will see the ICE Canada market closed on Monday.

Canola traded lower throughout the overnight session on the bearish technical momentum in the market but then started to firm as EU rapeseed markets, Malaysian palm oil and overnight electronic soybean markets rallied. Contributing to the advance was some export pricing and some small short covering.

Canola is expected to hold gains and extend them as the North American trading session gets underway and the Chicago Board of Trade soy complex rallied moderately, traders said. Ideas the market is severely oversold, slow farmer selling and the expected firmness in outside markets will support values, they stated.

Also giving support will be the continued lag in the canola crop development with overnight temperatures in the Saskatoon area of Saskatchewan dropping as low as 5 degrees Celsius maintaining concern about a frost threat.

Weighing on the market is technically based selling as the penetration of the C$400 in the Nov contract now makes that a significant resistance level over the market. The firm Canadian dollar is also a bearish influence in the market, analysts said.

Western barley futures were untraded and unchanged. The market is expected to firm this morning after the North American trading session gets underway on ideas the market is oversold and on the expected firmness in CBOT corn futures, brokers said.

However, there is little fresh news in the market and demand is lacklustre which will limit activity and limit the market firmness.

Prices at 08: 44 CDT in Canadian dollars per metric ton: