ICE Canola Futures Follow Oilseeds Up, Oil Tempers Gains

Activity in canola was expected to be choppy with participants awaiting clear market signals. The USDA is expected to issue its first national US winter wheat crop ratings this afternoon with participants looking to see if there was any significant winter damage to wheat.

Crude oil futures had started with advances overnight which in turn had lent some support to the oilseed markets in general. However, those values have turned lower in early morning action, which was taking the edge off of those commodities. Market players will also be keeping an eye on the direction the North American equity sector takes Monday.

The anticipation of some speculative demand was helping to keep a firm floor under canola with steady domestic processor demand aiding the strength. The strong processor demand was being linked to crush margins being at their most profitable level in quite some time, brokers said. Routine exporter pricing was also generating some minor support.

The upside in canola was being tempered by a drop off in fresh export demand and the increase in nearby canola supplies in the cash pipeline, traders said. Malaysian palm oil values also posted some minor declines overnight .

Technical resistance was also seen keeping the advances in canola in check, brokers said.

As of 9:49 am EDT, there were 1,304 canola contracts traded.

At 9:49 am EDT, 106 western barley contracts had traded with prices unchanged. Most of the activity in barley consisted of inter-month spreading, brokers said.

Prices in Canadian dollars per metric ton at 9:49 am EDT: