ICE Canola Follows Outside Markets Lower In Thin Trade

Downward pressure from outside markets kept canola values in negative territory. In overnight activity, e-CBOT soybeans, Dalian rapeseed, European rapeseed and Malaysian palm oil values all softened to lower price levels.

Adding to the bearish tone in oilseeds and vegetable oil, including canola, was speculative selling interest encouraged by overnight declines in global equities and crude oil futures.

Lower opening calls for soybeans at the start of North American trade in Chicago added to the weight on the market as did the strength of the Canadian dollar.

Looking ahead to the rest of Thursday’s session, brokers felt that grain and oilseeds could turn around if North American stock markets continue to build on early, minor strength.

Strong fundamentals for North American oilseeds, including tight old crop soybean supplies, steady export demand and Argentina’s poor soybean harvest will underpin canola prices.

Friendly chart signals and minor canola seeding delays are bullish for the market as well.

However, the strong Canadian dollar, the mixed tone in outside markets as well as profit-taking and long-liquidation ahead of the Canadian long weekend, could undermine canola contracts.

Canola’s trading volumes were very thin in early trade, with only 502 contracts traded as of 8:55 CDT.

Meanwhile, there were no western barley contracts traded as of 8:55 CDT, leaving prices unchanged from Wednesday’s closing levels.

Prices in Canadian dollars per metric ton at 8:55 CDT