ICE Canola Lifted By CBOT Gains, C$ Limits Upside

"It’s a battle between higher soybean values and the strong Canadian dollar, and there does not appear to be any clear cut winners at this junction," a broker commented.

Helping to contribute some support to canola was the pricing of routine export business by commercials and minor demand from domestic processors, traders said.

Some renewed speculative demand in the July canola contract was also evident and helped to provide some support to that contract, brokers said.

The upside in canola, however, was being limited by the strong dollar, as it makes it more expensive for end-users to buy the commodity, traders said.

Strong overhead technical resistance also was limiting the ability of values to move up.

Steady farmer deliveries of canola into the cash pipeline further weighed on prices. Traders noted that the weekly grain handling statistics from the Canadian Grain Commission showed that deliveries by producers during the week ended April 26, totalled 257,000 metric tons, which was up from the previous week’s 206,700 tons. Visible supplies of canola in commercial position also increased to 1.000 million tons from 993,400 the previous week.

The advances in canola were also being kept in check by sentiment that the area planted to the crop this spring in Western Canada will be larger than what the Statistics Canada survey revealed on April 24.

There were an estimated 2,127 canola contracts traded at 10:59 CDT. Of the contracts traded, 518 were spread related.

At 10:59 CDT, 44 western barley futures had changed hands. Of the contracts traded, 40 were spread related.

Prices in Canadian dollars per metric ton at 10:59 am CDT: