ICE Canola Futures Lag Outside Market As Selling Weighs

Strength in e-CBOT soybeans, Malaysian palm oil and European rapeseed values failed to pull canola prices higher, traders said.

According to market watchers, an increase in farmer selling, in response to decent cash bids, undermined prices. Producers whose fields are already seeded also have more time to market their crops now, they said.

Crop emergence in parts of western Canada was also thought to be weighing on the market as trade participants are more willing to sell now that they’re beginning to see signs of the new canola crop, a trader said.

The strong Canadian dollar added to the downward pressure on prices overnight by discouraging buying interest. In early trade, the currency was trading just below the 90 US cents mark.

The mixed tone in global equities and concerns that canola export demand is beginning to slow, further weighed on canola. Talk that domestic demand has recently backed off was seen as a bearish price influence as well.

However, Chicago soybean futures are called 10 US cents a bushel higher with the start of North American trade, which could trim canola’s losses and possibly trigger a recovery, brokers said.

Routine exporter pricing, spillover support from the bullish fundamentals underpinning US soybeans and gains Wednesday in crude oil futures will also provide underlying support to the market, traders said.

Early activity in canola was moderate, with 937 contracts having changed hands as of 9:04 CDT.

Meanwhile, a lack of interest in the western barley market left contract untraded and unchanged from Tuesday’s closing values as of 9:04 CDT.

Prices in Canadian dollars per metric ton at 9:04 CDT: