ICE Canola Higher On Overnight Soy Gains

Canola has noted a very thin activity overnight with intermonth spreading, which has been enhancing volumes this week, notably absent so far, traders said. The total canola volume was estimated at 286 contracts at 08:25 CST.

Canola was higher for most of the overnight session as the weaker US dollar supported commodities, including e-cbot soybeans, which eventually spilled in to support canola. Canola is holding small gains ahead of the opening of North American trading with expected small gains in Chicago Board of Trade soy complex futures helping to encourage the firmness in canola.

Canola is also drawing support
from the lack of farmer selling and friendly technical signals.
There was little fresh news to drive the market. Yesterday’s canola performance pushed the Jan contract down to the bottom end of it’s 3 week trading range. The ability of the market to hold in the trading range was viewed positively.

The continued strong export program into January was viewed positively with traders pegging canola export clearances out of the west coast at over 400,000 metric tons through mid January.

Some traders are also looking for a considerable inflow of fund money into canola in January as the funds re-balance their positions.

Capping the gains was the firm Canadian dollar and the large canola supply in western Canada.

Small commercial participation has been the only trade.

Western barley is higher in light trade. The lack of country selling accounted for the bulk of the support in the very thin activity. The estimated barley volume as of 09:44 EST was 10 contracts.

Prices at 08:38 CST in Canadian dollars per metric ton: