ICE Canola Follows US Soy Down

Canola saw a light trade with only light intermonth spreading noted.

The total canola volume was estimated at 8,127 contracts, down from Tuesday’s 12,105 contracts.

Canola prices were higher in the overnight market, prompted by gains in other international vegetable oils and oilseeds, traders said. Canola held onto gains as the North American trading session opened and the CBOT soybean market rallied. However, as the US soy market turned lower, canola followed the soybean market down to ended with losses.

Canola was mainly pressured down by the losses in the US soybean market as traders noted that canola followed soybeans pretty closely. Contributing to the weakness was the firm Canadian dollar and the advancing harvest in western Canada with favourable harvest weather forecast through next week. The market continues to be pressured by the Chinese requirement that all canola imports from Canada be blackleg free, analysts said.

Giving some support was the friendly technical signals and the sluggish farmer selling, traders said.

Routine export demand was augmented with light crusher buying.
The selling was mainly commercial. Traders noted that the canola
volumes suggest there is little interest in the market. They stated that speculative activity was very small today.

Western barley ended lower in light trade. The market was pressured down by sluggish demand and the weak tone in CBOT corn futures, brokers said. They noted most participants remain on the sidelines.

The total barley volume was estimated at 174 contracts, up from 65 contracts on Tuesday.

Prices are in Canadian dollars per metric ton: