ICE Canola Firms On Late US Soy Rally

Canola saw a light trade with intermonth spreading accounting for much of the volume. The thinness of the trade contributed to the choppy tone, traders said.

The total canola volume was estimated at 8,022 contracts, down from 11,153 contracts on Thursday.

Canola futures bounced to both sides of unchanged throughout the overnight session, edging down as the North American trading session approached. Canola turned higher as the North American trading session got underway and the Chicago Board of Trade soybean complex rallied. However at the close canola turned a bit higher as the CBOT soy market rallied.

Canola was pressured down for most of the session by the rapid harvest pace as traders estimate that 60% of the harvest is completed and that overall yields will be close to normal. The weak tone in CBOT soyoil, bearish technical signals and a slower pace to demand undermined prices as well.

Exporter demand remains brisk but analyst noted that crusher demand has slowed as the inability to sell canola meal into the US, because of salmonella contamination, has reduced the crush pace.
This morning the Canadian Oilseed Processors Association pegged the canola crush this week at 61.5% of capacity, well behind last year’s 84.3%.

Giving some support and leading to a choppy tone throughout the session was the slower pace to farmer selling and the weak Canadian dollar.
The late rally in CBOT soybean futures helped to pull canola to marginal gains.

Japanese pricing augmented exporter and light crusher buying. The selling came from some light commodity fund selling, and commercial offerings. Position evening was also noted by speculators ahead of the weekend.

Western barley ended mixed in light trade. The Oct contract was dominated by liquidation trade as the contract will be de-listed at its expiration.

The Nov contracts edged higher on the lack of farmer selling which offset weakness in CBOT corn and the lower feed barley prices in Thursday’s Canadian Wheat Board Pool Return Outlook, brokers said.

The total barley volume was estimated at 81 contracts, up from 62 contracts on Thursday.

Prices are in Canadian dollars per metric ton: