ICE Canola Futures Recover In Overnight Activity

Providing support to canola prices were gains in the e-CBOT soy complex, European Matif rapeseed futures, global equities and crude oil prices, market watchers said.

Calls for a 10 to 15 US cent higher start for soybeans in Chicago once North American trading gets underway also prompted some of the light buying interest seen in canola.

Friendly technical chart signals, ideas that swine flu fears are easing and commercial demand tied to the covering of canola export business will be supportive for canola prices as trade progresses.

However, in early activity the Canadian dollar was over a cent higher versus the US dollar and brokers thought the strength of the Canadian currency would be an undermining factor for the canola market.

Also, concerns that US soybean acres may be pushed up due to corn planting delays in the US Midwest could result in downward pressure on CBOT soybeans spilling over to negatively impact canola prices, traders warned.

Early volumes in canola were moderate, with 1,005 contracts having been traded as of 8:57 CDT. A portion of the activity was tied to inter-month spreading.

There had been no interest in the western barley market as of 8:57 CDT, leaving contracts unchanged from Tuesday’s settlement.

Prices in Canadian dollars per metric ton at 8:57 CDT: