ICE Canola Futures Ease On Outside Oilseed Weakness

Declines overnight in the e-CBOT soybean complex helped to put canola on the defensive as did the lower close in Malaysian palm oil futures, brokers said.

The USDA in a supply/demand report early Tuesday put soybean production at 3.319 billion bushels, above the pre-report average projection of 3.269 billion. The estimate was also higher than the USDA’s October estimate of 3.25 billion.

The advancing canola harvest in western Canada was viewed as an undermining price influence with favourable weather conditions persisting.

The uncertainty surrounding Canada’s ability to export canola to China after blackleg restrictions come into play after November 15, also continued to hang over the market.

There were reports overnight by a Chinese Government official that canola with blackleg will be allowed into China, but only through ports where canola is not grown domestically. Official confirmation on this development was not available.

The lower calls for CBOT soybean and soyoil futures with the start of the North American day session were helping to weigh on some canola contracts.

The losses in canola were being limited in part by a small pull-back in the value of the Canadian dollar early Tuesday. Sentiment that canola is oversold and in need of an upward correction also helped to provide some underlying support, brokers said.

Position evening by market participants was anticipated ahead of the closure of the ICE Canada trading platform on Wednesday in observance of Canada’s Remembrance Day.

Light domestic crusher demand and the pricing of old export business was also helping to generate a firm floor for canola, brokers said.

As of 9:50 am EST, there were 2,108 canola contracts traded.

As of 9:50 am EST, no western barley contracts had been traded.