ICE Canola Holding Small Gains

The activity in canola was described as choppy and confined to the November, January and March contracts.

Some of the commercial interest was said to be covering domestic requirements, brokers said. The commercial interest was also said to be pricing old export business to Mexico and Japan.

Weakness in the Canadian dollar Wednesday was also contributing to the strength in the nearby canola contracts. The reluctance of producers to deliver canola into the cash pipeline was also an underpinning price influence, brokers said.

The threat of frost damage to crops in western Canada also continued to provide some underlying support. Overnight temperatures dipped close to the freezing level in parts of the Peace River region of northern Alberta, according to Environment Canada data.

Brokers also pointed out that based on historical weather data, frost has occurred in Saskatchewan at this time in previous years.

The upside in canola was being offset by the declines seen in CBOT soybean and soyoil futures. Weather outlooks calling for sunshine and warmer temperatures over the next few days was also limiting the upside, as the conditions were seen advancing the maturity of crops across much of western Canada, traders said.

The gains in canola were also being tempered by the sharp downturn in global crude oil futures.

There were an estimated 2,760 canola contracts traded at 10:34 CDT. Of the contracts traded 248 were spread related.

There were 182 western barley futures traded as of 10:34 CDT. Of the contracts traded, 106 were spread related. Light commercial offerings in the absence of willing buyers allowed prices to be pushed downwards, brokers said.

Prices in Canadian dollars per metric ton at 10:34 am CDT: