ICE Canola Hits New Highs Following Soybeans

Updated USDA supply/demand tables were seen as particularly bullish for corn which pulled soybeans, and in turn canola, higher as well, according to a Winnipeg-based trader. He said the tight corn stocks forecast confirmed the need for all of the North American grains and oilseeds to keep going higher in order to ration demand and make sure enough acres are planted this spring.

Exporters and domestic crushers remain some of the featured buyers in canola, given the favorable crush margins, according to the trader. He said a lack of farmer selling was also underpinning the market, as producers continue to only sell on a scale-up basis.

Some speculative profit-taking early in the day did limit the upside in canola. However, the trader noted that the speculative funds were also on the buy side. He said the funds could be using a strategy where they "sell bullets" at the beginning of the session, in order to turn around and eventually take values higher to enhance their overall long positions.

The Canadian dollar was holding steady on Wednesday, providing little direction for canola.

At 10:50 CST, about 15,000 canola contracts had changed hands with spreading accounting for about half of the trade volumes.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:50 CST: