ICE Canola Futures Higher on Weak C$, Short- covering

Some minor support in canola was also derived from the early strength displayed by e-CBOT soybean values overnight. The e-CBOT soybean complex, however, gave back some of the gains to end the overnight session mixed.

Some positioning ahead of the weekend and ahead of next week’s supply/demand balance sheets scheduled to be released by the USDA on Tuesday was also evident.

The ICE Futures Canada complex will also be closed on Wednesday, November 11, in observance of Canada’s Remembrance Day.

Much of the weakness seen in the Canadian dollar was associated with bearish employment data released in both Canada and the US this morning, showing that the economic recovery is not progressing as fast as had been anticipated, brokers said. The economic data also had a bearish impact on energy and equity markets.

The upside in canola was being limited by the lower calls for CBOT soybean and soyoil futures with the start of the North American day session, traders said.

Good weather conditions across much of western Canada, which will allow producers to make significant advances in the harvest of the remaining canola crops, also was seen limiting the upside in the commodity, brokers said.

The continued uncertainty regarding Canada’s ability to export canola to China after that country imposes blackleg restrictions on the commodity after November 15, also was an undermining price influence.

Discussions on the issue between Canadian and Chinese government officials resumed Thursday but no word was available on whether any progress was made, brokers said.

Canola was also seen coming under some downward price pressure from increased hedge selling by commercials as the day progresses, brokers said.

As of 9:37 am EST, there were 1,608 canola contracts traded.

As of 9:37 am EST, no western barley contracts had been traded.