ICE Canola Follow E-CBOT Soybeans, Veg Oils Lower

Adding to the downward pressure on canola contracts was the bearish tone in global equities and crude oil futures after the mood among global investors soured overnight, market watchers said.

Sharp losses in Malaysian palm oil and European rapeseed values added to canola’s downward price action.

Ideas that Chicago soybeans will have a tough time rallying Thursday as they did in the first half of the week also encouraged some overnight selling interest in canola. Soybeans are called 12 to 15 US cents a bushel lower when North American trading begins although higher-than-expected weekly export sales figures could temper opening declines, brokers said.

The retreat of the Canadian dollar versus the US dollar was positive for canola prices but brokers noted the currency is still considerably higher on the week.

Profit-taking, ideas that canola futures are overextended and the absence of fresh export business will be undermining influences on values as trade progresses.

Speculative selling and long-liquidation, depending on macroeconomic events Thursday, are potentially bearish for grains and oilseed markets as well, traders said.

Commercial demand, planting concerns and the bullish fundamentals underpinning US soybeans will provide a floor for canola prices.

Early canola trade volumes were moderate, with 812 contracts having changed hands as of 8:45 CDT.

Meanwhile, western barley futures were untraded and unchanged as of 8:45 CDT.

Prices in Canadian dollars per metric ton at 8:45 CDT: