ICE Canola Lifted By Late US Soy Rally

Canola saw a moderate trade with intermonth spreading enhancing the volumes. Crushers were the buyers of the spread while elevator companies were the sellers.

The total canola volume was estimated at 8,129 contracts, down from 9,505 contracts on Friday.

Canola was lower in the overnight market on the weak tone in international vegetable oil prices and the advancing harvest in western Canada. Canola maintained its losses as the North American trading session opened and the Chicago Board of Trade soybean market dropped modestly. Canola ended the day with just marginal losses following the late rally in CBOT soybean futures.

Canola was pressured down for most of the session by the weak
tone in CBOT soy complex futures, favourable growing conditions with no frost forecast this week and the advancing harvest. Traditionally, western Canada would see it’s first significant frost this week. Contributing to the decline is sluggish export demand with exporters indicating that export demand is about C$10.00 under current values.
Bearish technical signals prompted some speculative selling, traders said.

Giving some support was the weak Canadian dollar and slow farmer selling as producers focus on the harvest. When CBOT soybeans turned higher at the close, canola rallied back to almost unchanged, led by firmness in the actively traded Nov contract.

Japanese pricing was augmented by some commission house buying. The selling came mainly from speculators and commercials.
Commission house selling was augmented by commodity fund offerings with traders estimating that funds had added another 500 contracts to their Nov short position.

Western barley ended higher in light trade. The market was supported by the lack of farmer selling in the very thin volumes, brokers said.

The total barley volume was estimated at 10 contracts, down from Friday’s 380 contracts.

Prices are in Canadian dollars per metric ton: