ICE Canola Firms On Outside Markets

Canola saw a light volume of trade with the estimated volume at 08:24 CDT being 595 contracts, all in the Nov contract.

Canola was higher in the overnight market, reflecting gains in international vegetable oil prices and the strength in outside markets including crude oil. Canola was expected to see continued strength as the North American trading session got underway with expectations for strength in the Chicago Board of Trade soy complex futures likely to support the canola market, said traders.

The continued uncertainty about the canola crop quality and quantity will underpin the market, said traders, with increased export demand also supportive.

However, the firmness in the canola market is expected to be smaller than the US soy market as a very strong Canadian dollar and favourable growing conditions forecast through month end will limit the ability of the market to rally.

Western barley is expected to post losses this morning as weakness in the cash barley market, sluggish demand and completion from cheaper feed alternatives will weigh on barley prices, say brokers.
However losses are expected to be modest.

Prices at 08:48 CDT in Canadian dollars per metric ton: