ICE Canola Hits New Contract Highs

Commission house and speculative fund buying was behind some of the strength, as they reacted to bullish technical signals, according to a Winnipeg based broker. He said thin outright volumes were likely exaggerating the move in canola, as the majority of the activity was confined to spreading.

Routine exporter and domestic crusher pricing also provided some support for canola, according to the broker.

Gains in CBOT soyoil added to the firmer tone in canola, although a weaker tone in soybeans did temper the upside.

A stronger Canadian dollar also put some pressure on canola, causing crush margins to deteriorate slightly, according to the broker.

The USDA releases updated supply/demand reports on Wednesday, and some positioning ahead of the data was a feature.

At 10:38 CST, about 6,800 canola contracts had changed hands with spreading accounting for over 5,000 of the contracts traded.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:38 CST: