ICE Canola Higher On Catch-Up Play With CBOT Soybeans

Most of the activity so far, however, has been confined to the nearby Nov, Jan and Mar contracts.

Early support in canola reflected the sharp advances seen in CBOT soybeans and soyoil on Monday with steady commercial demand contributing to the upward price action, brokers said. Some additional strength in canola also came from the firmer tone in CBOT soybean futures on Tuesday.

Helping to underpin canola futures were the unsettled weather patterns in western Canada, which have not been conducive for producing a large crop, analysts said. Temperatures have continued to remain below normal with the threat of an early frost also remaining a real possibility.

The absence of producer deliveries of canola into the cash market has also helped to keep futures firm, brokers said. Some light pricing of previously conducted export business also helped to underpin values.

Light speculative demand in the absence of willing sellers contributed to the upward price action, traders said. Some of the buying was linked to the covering of previously sold positions.

The upside in canola was being offset by the strength of the Canadian dollar and by the retreat seen in CBOT soyoil values.

There were an estimated 11,657 canola contracts traded at 11:42 CDT.

Western barley futures were trading at higher levels with much of the support coming early in the session. Buying was tied to the advances seen in CBOT corn futures on Monday when Canadian markets were closed, brokers said.

There were 55 western barley futures traded as of 11:42 CDT.

Prices in Canadian dollars per metric ton at 11:42 am CDT: