ICE Canola Futures Climb On Firm Outside Oilseed Markets

Steady to higher calls for CBOT soybean and soyoil values with the start of the North American day session also helped to encourage some upward price action in the nearby canola contracts, traders said.

The absence of significant farmer deliveries into the cash pipeline in western Canada was supportive for canola as was routine exporter pricing of old business, brokers said.

Domestic crusher demand for canola has also improved which has helped to underpin the nearby canola futures, traders said.

Activity was described as volatile with participants hesitant to take on large positions ahead of the new USDA supply/demand balance sheets which are scheduled to be released Wednesday morning.

Firmness in global crude oil futures this morning helped to provide a solid price floor for canola values, brokers said.

The relative firmness of the Canadian dollar slowed the upward price climb with overbought price sentiment also sparking some minor selling interest in canola, traders said. Malaysian palm oil futures experienced some declines overnight which helped to restrict the price advances seen in canola.

The lack of fresh export business for Canadian canola was also an undermining price influence.

Improved growing conditions in the soybean producing regions of Argentina also limited the upside in canola, traders said.

As of 9:29 EST, there were 2,664 canola contracts traded.

As of 9:29 EST, no western barley contracts had been traded.