ICE Canola Higher On Follow-Through Buying

Calls for a stronger start to the CBOT soy complex were providing some support for canola, according to a broker. Overnight advances in Malaysian palm oil and European rapeseed contracts were also seen underpinning the canola market.

An analyst noted that canola futures are testing some nearby resistance points. The March contract traded briefly above C$388 per metric ton chart resistance in overnight trade, and a sustained move above that level could bring in some additional speculative buying.

Steady end user demand, while farmers remain reluctant sellers, provided some further support for canola, according to traders.

However, ample canola supplies in western Canada should keep the advances in check. Large global oilseed supplies, and the looming South American crop were also cited as bearish price influences.

The Canadian dollar was up by nearly half a cent relative to its US counterpart early in the day. The stronger currency should put some further pressure on canola, according to traders.

About 1,700 canola contracts had traded as of 8:41 CST. Spreading was only a minor feature on Thursday, after many participants rolled their positions out of the nearby March contract earlier in the week.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:41 CST: