ICE Canola Futures Up, Gains Tempered As Crude Oil Drops

Helping to underpin canola were indications that the canola export program in April will again be large. The slow pace of farmer deliveries into the cash pipeline in western Canada contributed to some of the upward price action, traders said.

New-crop canola contracts were finding some minor support from the uncertainty surrounding 2009 canola plantings, brokers said.

Malaysian palm oil futures managed to post small advances overnight which was considered supportive.

The upside in canola was being limited by the downturn in global crude oil values and the weakness being exhibited by the North American equity sector early Tuesday, traders said.

The narrowly mixed tone in e-CBOT soybean values overnight and the mixed calls for CBOT soybean and soyoil futures with the start of the North American day session were viewed as more of an undermining price influence than supportive, brokers said.

Helping to keep canola on the defensive was the larger than normal supply of unpriced canola which continues to sit on farm and is hanging over the market, traders said.

European rapeseed futures were lower in overnight activity and was seen as a minor bearish price factor.

As of 9:45 am EDT, there were 529 canola contracts traded.

At 9:45 am EDT, 38 western barley contracts had traded with prices unchanged. The bulk of the trade in barley was inter-month spreading, brokers said.

Prices in Canadian dollars per metric ton at 9:45 am EDT: