ICE Canola Holding Firm On Technical Buying

Canola saw a moderate trade with the estimated volume at 11:27 CDT 7,024 contracts with an estimated 1,000 contracts involved in the spread trade.

Canola rallied early on the firm tone in Chicago Board of Trade soy complex futures and gains international vegetable oil markets. However as CBOT soy futures turned lower that trimmed the gains in canola with prices holding firm just above Wednesday’s close, traders said.

Giving support to the market was friendly technical signals which stimulated good levels of commodity fund speculative buying.

Farmer selling did see an increase, but cash dealers said it was still overall light. Talk of low temperatures forecast for the Edmonton area and the Peace River in Alberta this weekend also gave some support.

Capping the gains were the favourable growing conditions in Manitoba and Saskatchewan and the firm Canadian dollar, traders said. Losses in the US soy complex also weighed on canola.

Besides commodity fund and commission house buying, there was small crusher buying and continued routine exporter demand pricing canola for Mexico. Japanese buying was also evident.
Traders estimated fund buying at 600-1,000 Nov contracts.
The selling was mainly commercial with exporter selling noted and elevator company offerings early in the day.

Western barley posted gains in light trade.
The continued lack of farmer selling accounted for the firmness amid a lack of news, brokers said.

The total barley volumes at 11:23 CDT was estimated at 88 contracts.

Prices at 11:23 CDT in Canadian dollars per metric ton: