ICE Canola Higher, Gains in Soybeans Supportive

CBOT soybeans, soyoil, and soymeal were all up on speculative fund buying, which spilled into the canola market, according to a broker. However, he added that the funds were not as active in canola, tempering the upside.

Commercial end-user pricing was also providing some underlying support for canola, as the commodity remains cheap compared to soybeans, said the broker.

However, demand for canola remains weaker overall as the industry continues to deal with restrictions on exports to China, said the broker. Problems moving canola meal to the US, due to salmonella contamination, is also cutting into the demand from domestic crushers.

Light farmer hedges also put some pressure on canola prices, although the broker noted that widening basis levels in the country were serving to slow the country movement with most producers content to wait for better prices if they can.

The Canadian dollar was sharply stronger at midday Monday, also weighing on canola, according to the broker. However, he pointed out that when the exchange rates were factored in, canola was actually outperforming soybeans on the day.

At 10:58 CST, about 4,000 canola contracts had changed hands, with inter-month spreading only a small feature.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:58 CST: