ICE canola futures mixed, outside gains supportive

Dwayne Klassen, Resource News International

Winnipeg, March 26 –– Canola contracts on the ICE Futures Canada platform were trading in a narrowly mixed range as of 9:50 EDT. Gains overnight in the outside oilseed markets helped to encourage some support in canola, but the absence of fresh demand helped to spark some light liquidation orders, market watchers said.

Gains in e-CBOT soybeans, Malaysian palm oil and Matif rapeseed futures helped to spark some buying in canola, brokers said. Gains in global crude oil and firmness in the North American equity markets early Thursday were also underpinning price influences, traders said.

Higher calls for CBOT soybean and soyoil values with the start of the North American day session also helped to stimulate some minor support, brokers said.

Helping to generate some strength in canola will be steady domestic crusher demand and the pricing of routine export business.

There were reports from the Chinese Ministry that its canola demand will decline to only around 69,000 tonnes during the month of April.

Weakness in canola was being linked to firmness in the Canadian dollar early Thursday and the absence of fresh export demand from commercials, traders said. Profit-taking and weak chart signals were also undermining price influences.

Month-end book squaring and positioning ahead of the U.S. Department of Agriculture’s acreage and grain stocks in all positions report scheduled for release next week was likely to be a feature of the activity, brokers said. Financial market uncertainties also continue to sidelines a number of market participants.

Some elevator company hedge selling was also seen putting some downward pressure on canola futures, brokers said.

As of 9:50 a.m. EDT, there were 489 canola contracts traded.

At 9:50 a.m. EDT, no western barley contracts had traded with prices unchanged.

Prices in Canadian dollars per tonne at 9:50 a.m. EDT:

          Price    Change
Canola
     May     422.30 Up 0.50
     Jul     425.10 Dn 0.80
     Nov     429.60 Dn 1.20
 
Western Barley
     May     144.00 Unchanged
     Jul     151.50    unchanged