ICE Canola Firms On Strength In Vegetable Oils

Canola contracts posted small gains overnight on the back of strength in vegetable oil markets. E-CBOT soybeans saw double- digit gains, European rapeseed futures firmed and Malaysian palm oil values touched nine-month highs, market watchers said.

Higher opening calls for Chicago soybeans once North American trade begins also encouraged light commercial and local buying interest, brokers said.

Limiting canola’s overnight gains, however, were competing price signals from outside influences. Global stock markets posted declines while crude oil futures managed minor gains. Crude oil futures have since retreated.

Brokers felt further weakness in outside markets could weigh on grain and oilseeds as trade progresses but they noted that canola is well supported.

Domestic crush margins are favourable, canola’s chart signals remain friendly and farmer deliveries into the commercial pipeline are slow as producers concentrate on seeding.

Tight old crop US soybean supplies, Argentina’s disappointing soybean harvest and lagging US soybean planting progress are bullish for canola as well, traders said.

Meanwhile, the Canadian dollar was little changed in early trade Wednesday and was not a significant price influence.

Canola was seeing moderate trade volumes in early trade Wednesday.
At 8:59 CDT, 1,329 canola contracts had changed hands.

In the western barley market, a lack of interest left values unchanged from Tuesday’s settlements. There were no barley contracts traded as of 8:59 CDT.

Prices in Canadian dollars per metric ton at 8:59 CDT: