ICE Canola Follows Soybeans Higher

A Winnipeg-based broker said the new crop November contract was leading the upward move in canola, with the ‘fight for acres’ heating up heading into spring. He noted that recent advances in wheat prices were also accounting for some of the strength in canola, as the high wheat prices could have some producers second guessing how much canola they want to put in the ground.

Farmer selling put some downward pressure on values, tempering the gains, according to a broker. However, he added the selling was largely on a scale-up basis with commercial buyers continuing to pay up in order to get their necessary supplies.

The Canadian dollar was slightly firmer on Monday, which weighed slightly on canola prices.

At 10:38 CST, about 7,000 canola contracts had changed hands with spreading only a minor feature. The broker noted that the large fund roll out of the nearby March contract was mostly complete, limiting the spread activity in the market.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:38 CST: