ICE Canola Futures Up On Harvest Delays/Outside Markets

Market participants estimated that at least 20% to 30% of western Canada’s canola crops remain out on the fields. Producers have not been able to finish off harvest activities due to continued precipitation in the form of both rain and snow.

Adding to the support in canola were the advances seen in e-CBOT soybean futures overnight as well as the gains in Malaysian palm oil and European rapeseed, brokers said.

Steady to slightly higher calls for CBOT soybean and soyoil futures with the start of the North American day session Thursday helped to underpin canola.

The outside markets were also lending a positive influence to canola with stocks, energy and metals trending higher overnight and strengthening further into this morning.

Market participants, meanwhile, remains wary of trade developments with respect to China especially in view of the looming November 15 deadline where China demands all canola shipments afterwards must be certified as blackleg-free.

It’s being reported that a meeting between Canadian and Chinese government officials is scheduled for Friday. Canada is likely to push at very least for a deferral of the Nov 15th deadline. Traders report from last Friday’s conference call of Canadian officials stating that China seemed conciliatory and didn’t want to stop trade. The results from Friday’s meeting could go a long way to influence market psychology in the canola market, brokers said.

The upside in canola may also be limited in part by a slight upward rebound in the value of the Canadian dollar early Thursday.

As of 9:38 am EDT, there were 1,193 canola contracts traded.

As of 9:38 am EDT, no western barley contracts had been traded.