ICE Canola Lifted By Weak Loonie

Canola volumes were moderate with only small intermonth spreading evident.

The total canola volume was estimated at 10,058 contracts, up from Monday’s 6,919 contracts, including an estimated 1,056 contracts involved in the spread trade.

Canola was higher in the overnight market as the weak Canadian dollar and ideas that canola was undervalued against other oilseeds boosted prices. Canola held onto to its gains as the North American trading session got underway and the Chicago Board of Trade soy complex opened lower. Canola ended with gains.

Canola drew much of its support from the weak Canadian dollar with the slow farmer selling and friendly technical signals boosting prices, traders said. The ability of the Jan contract to break above the significant resistance at C$400 per metric ton level prompted support in the market. Some fresh export activity and improved crush margins also gave support to prices.

A late firming in the CBOT soy complex gave a late boost to the canola market , although canola showed more strength than the US market for the bulk of the day.

However, maintaining selling pressure on the market and creating a choppy tone was the large canola crop, weakness in crude oil and the lingering uncertainty about Canadian canola sales to China.

Exporter pricing of a cargo of canola destined for Mexico through Thunder Bay and crusher buying supported prices. There was some light speculative buying noted in the market. The selling was mainly commercial.

Western barley ended modestly lower in light trade. The lack of domestic demand was partially offset by the absence of willing farmer selling, leaving volumes small and prices fractionally lower,
brokers said.

The total barley volume was estimated at 30 contracts, down from 220 contracts on Monday.

Prices are in Canadian dollars per metric ton: