ICE Canola Lifted By Late US Soy Rally

Canola saw a moderate trade with intermonth spread activity enhancing volumes.

The total canola volume was estimated at 7,767 contracts, down from 15,180 contracts on Tuesday, including an estimated 2,876 contracts involved in the spread trade.

Canola was narrowly mixed in the overnight trade and turned lower just ahead of the opening of the North American trading session. Canola’s extended its losses as the North American session got underway and the CBOT soyoil market posted losses. Canola fell to its lows late in the session when the CBOT soybean market dropped in response to the Informa Economic’s crop forecast. Canola climbed back to just modest gains in most contracts by the close as the CBOT soy complex rallied.

Canola was pressured down by the early weakness in CBOT soyoil. However profit taking was evident throughout the session, said traders, who noted that canola has rallied almost C$50 per matric ton since Friday.
"This market is due for a correction lower..it’s gained over 10% in 3 trading sessions," said a trader.

Also weighing on the market was the lack of confirmed fresh export demand and the firm Canadian dollar.

However, pulling canola off its lows was the slow farmer selling and the continued concerns about cold conditions in western Canada as temperatures dropped as low as 4 degrees Celsius once again in Saskatchewan. A firming in CBOT soy complex in the last half hour of trade took canola to modest gains in most contracts in the last 15 minutes of the session.

Routine exporter, crusher and Japanese buying met commission house profit taking, light elevator company selling and exporter liquidation selling.

Western barley futures ended lower in light commercial trade. The market was undermined by the weakness in CBOT corn and sluggish end user demand. Traders are indicating that many feed lots have covered needs as far out as January.

The total barley volume was estimated at 35 contracts, down from Tuesday’s 89 contracts including an estimated 10 contracts involved in the spread trade.

Prices are in Canadian dollars per metric ton: