ICE Canola Gains Strength on Weather Worries

A trader said that with the uncertainty of the weather and a severe frost forecast for parts of Saskatchewan and Alberta later on in the week, the market was trading jittery, and he said that nervous markets go up. He said the market was waiting for producers to get back on the fields and harvesting, as wet weather continues to delay operations.

Strength also came from soybeans on the CBOT platform, which saw US production estimates decrease over the weekend, and rumors that China may have been buying.

The trader said canola had been ignoring the Canadian dollar’s strength on Monday because of the weather concerns.

Export demand was not overly strong, the trader said, as exporters felt despite the harvest delays, the crop was still there.

Producer selling was very light, as growers remained worried about their ability to get the crop off the field. The trader said most of the selling was routine commercial activity.

At 10:40 CDT, there had been about 3,000 canola contracts traded.

Western barley contracts remained unchanged and untraded at midsession.

Prices in Canadian dollars per metric ton at 10:40 CDT