ICE Canola Little Changed In Dull Trade

Canola saw a very thin choppy trade with only small intermonth spreading evident.

The total canola volume was estimated at 2,825 contracts, down from Monday’s 5,544 contracts, including an estimated 440 contracts involved in the spread trade.

Canola futures were modestly higher overnight in the wake of gains in outside markets. Canola held onto to its opening gains as the North American trading session got underway and the US soy complex rallied. However, prices then started to bounce around edging lower with prices finishing little changed.

Canola was pressured down by beneficial growing conditions which traders feel have improved crop conditions. "The trade was estimating the canola crop at 9 – 9.5 mln tonnes just a week ago and now most feel it is in the 9.5 – 10 mln tonne level," said a trader. The firm Canadian dollar and sluggish fresh demand contributed to the weaker tone as well.

However in the thin volumes prices bounced to both sides of Monday’s close making traders skeptical about the price direction.
"In these volumes it is only taking a small order to move prices up or down; how can you make any sense of the market , " said a broker.

Canola was supported by slow farmer selling and the gains in the Chicago Board of Trade soy complex. Also helping to underpin the market was the forecast for frost in parts of Alberta overnight.

Routine exporter and crusher buying met mainly commercial selling.

Western barley ended a bit weaker in light trade. Commercials dominated the small trade. There was little strong interest in the market which allowed prices to drift and end little changed, brokers said.

The total barley volume was estimated at 95 contracts, up from 74 contracts on Monday.

Prices are in Canadian dollars per metric ton: