ICE Canola Follow Outside Markets Higher In Very Active Trade

Lifting the market overnight were advances in e-CBOT soybeans, European rapeseed and a firm tone in stock markets. Surging crude oil futures also added strong support to the market.

Further augmenting canola’s gains was good buying interest. Brokers thought that much of the interest was likely tied to commercial demand following Wednesday’s talk of fresh export business.

According to traders, Pakistan purchased one cargo of Canadian canola yesterday and was said to be interested in another, while China was also thought to be in the market for canola.

Speculative interest, on account of friendly chart signals and a generally firm tone in commodities Thursday, likely accounted for some of canola’s early upward price action as well, brokers said.

Further underpinning canola prices are bullish fundamentals for old crop soybeans, Argentina’s small soybean harvest and a slower pace to farmer selling in western Canada as producers concentrate on getting seeding and other spring tasks.

Canola cash bids are above C$10 a bushel in all three prairie provinces but much of the selling normally triggered by that price target is thought to have been sold already. Higher price incentives may be required to attract deliveries into the elevator system, traders said.

Chicago soybeans are called 10 US cents a bushel higher for the start of North American trading, which may extend canola’s early advances, according to market watchers.

As of 9:05 CDT, 3,655 canola contracts had changed hands.

Meanwhile, the western barley market failed to attract any early interest. Values were untraded and unchanged as of 9:05 CDT.

Prices in Canadian dollars per metric ton at 9:05 CDT: