ICE Canola Follows Outside Markets Down

Declines overnight in the overseas oilseed markets helped to spark some of the early selling interest with losses in global crude oil and the North American equity markets contributing to the downward price movement, brokers said.

The losses in canola were amplified by the sell-off seen in CBOT soybean and soyoil futures with the start of the North American trading day.

Chart related speculative offerings added to the price slide seen in canola with the triggering of sell-stop orders helping to exaggerate the declines, traders said.

The losses in canola were also linked to the absence of fresh export sales being put on the books.

The losses in canola were tempered in part by the weak Canadian dollar and by light, but steady domestic crusher demand, traders said. Routine export business was also evident and helped to generate some underlying support.

Weather uncertainties in western Canada and the potential for a much reduced sized crop also helped to slow the price drop in canola, brokers said.

There were an estimated 7,467 canola contracts traded at 10:38 CDT. Of the contracts traded, 4,474 were spread related.

There were no western barley futures traded as of 10:38 CDT.

Prices in Canadian dollars per metric ton at 10:38 am CDT: