ICE Canola Futures Up On Outside Oilseeds Gains

Gains were posted overnight in the e-CBOT soybean complex as well as in Malaysian palm oil and European rapeseed futures, brokers said.

Some of the buying in canola also reflected the higher calls for CBOT soybean and soyoil futures with the start of the North American day session, brokers said.

Concerns about delays to the US soybean harvest were expected to give canola values an upward boost as will the slower than expected harvest progress seen across Western Canada on the weekend.

Routine pricing of old export business was seen providing some support with strength in the cash market also generating a firm price floor for canola.

The cash basis in Alberta was reported as much as $10/tonne over futures and $13 under in Manitoba at selected locations. The firm tone reflected a strong export pace with November exports forecast at 600,000 to 700,000 tonnes. December through February export coverage remains thin, though exporters are ramping up pricing for those delivery periods.

The upside in canola will be limited by renewed strength in the Canadian dollar early Monday.

The slowdown in domestic crusher demand was also seen as an undermining price influence for canola, traders said. Continued difficulties in moving canola meal into the US market due to shipments being rejected for salmonella traces was linked to the reduction in demand. The Canadian Oilseed Processors Association on Friday reported that the latest crush was only at 63% capacity, compared to 89% a year ago.

As of 9:50 am EDT, there were 688 canola contracts traded.

As of 9:50 am EDT, no western barley contracts had been traded.