ICE Canola Lacking Clear Direction in Very Thin Trade

Traders said it was difficult to discern any clear direction in the market because activity was extremely light, making it easy to push canola prices higher or lower.

That said, some downward pressure on canola futures was thought to be tied to the good canola and soybean planting progress made late last week in both Canada and the US, brokers said.

However, declines in canola were limited by uncertainty as to which way CBOT soybeans will trade Tuesday, market watchers said. The arrival of more rainfall Monday will slow planting in the coming days, which would be bullish for canola and soybean prices, but the 6-10 day weather forecast is calling for warmer, drier weather in Canada and in parts of the US.

The retreat of the Canadian dollar Monday will help to encourage light local and commercial buying interest as will the firm tone in Canadian equities, market watchers said. Friendly technical chart signals and the bullish fundamentals underpinning Chicago soybeans will add to the market’s underlying support.

Lower crude oil futures and the lack of fresh export business were viewed by brokers as undermining price influences.

As of 9:10 CDT, only 90 canola contracts had changed hands.

Western barley futures, meanwhile, were untraded and unchanged as of 9:10 CDT.

Prices in Canadian dollars per metric ton at 9:10 CDT: