ICE Canola Higher as Prices Play Catch-Up

The stronger tone being exhibited by CBOT soybean and soyoil again Tuesday provided some additional upward price momentum in canola, market watchers said.

Strength overnight in Malaysian palm oil futures and e-CBOT soybean values contributed to the advances seen in canola.

Fresh speculative buying was also evident and further supported canola futures, traders said. Some of the speculative interest was induced by friendly chart signals.

The absence of significant farmer deliveries into the cash pipeline also provided a firm floor for canola futures, brokers said.

Concerns about seeding delays also helped to fuel some early buying in canola as did routine pricing of export business by commercials.

The upward price action in canola was limited by profit-taking at the highs, a drop off in domestic crusher demand, and revised weather outlooks calling for improved planting conditions across the Canadian grainbelt over the next week, traders said.

Firmness in the Canadian dollar also limited some of the upside in canola, brokers said.

There were an estimated 7,621 canola contracts traded at 11:25 CDT.

At 11:25 CDT, no western barley future had changed hands.

Prices in Canadian dollars per metric ton at 11:25 am CDT: