ICE Canola Futures Find Support From Exporter Pricing

The advancing harvest in western Canada and a drop off in fresh export demand helped to stimulate some of the selling interest.

Activity in canola was expected to be choppy ahead of Friday`s updated crop production survey from Statistics Canada. The report is expected to show a larger canola supply, but likely will not show the full extent of the larger crop because the report was taken too early in the month that saw exceptionally favourable season ending weather, brokers said.

Small advances were posted in European rapeseed and Malaysian palm oil futures overnight, while activity in the e-CBOT soybean complex was steady to fractionally weaker.

A drop off in producer deliveries of canola into the cash pipeline was also seen as a mildly supportive influence. Farmers were believed to be holding off selling any canola in hopes of achieving better prices in the near future, brokers said.

Early weakness in the Canadian dollar Thursday was also an underpinning price influence, but the currency has strengthened.

The lower calls for CBOT soybean and soyoil futures with the start of the North American day session was seen keeping canola on the defensive and depending on the extent of the losses on the opening, market participants were expecting canola to also turn mostly lower, analysts said.

The advanced state of the canola harvest in western Canada was an undermining price factor with bearish chart signals also seen keeping the upside in canola limited.

The drop off in domestic demand for canola due to problems in shipping canola meal into the US also contributed
some bearish sentiment to values, brokers said.

As of 9:46 am EDT, there were 1,066 canola contracts traded.

As of 9:46 am EDT, no western barley contracts had been traded. Most market participants were expecting Statistics Canada to raise its barley production estimate in its report scheduled for release October 2, brokers said.