ICE Canola Little Changed In Dull Trade

Canola saw good volumes with the bulk of the trade comprised of intermonth spreading. Exporters were noted rolling Jan futures into the Mar contract as they adjusted their export lineups, traders said.

"It looks like there will be less (canola) movement to China in the short term and more to other destinations and the exporters need to adjust their positions for that," said a trade source. China has embargoed purchases of Canadian canola due to possible contamination with Blackleg. The trader said it was "interesting" that open interest is back to almost pre-embargo
days.

Outright trade remained modest although it was heavier than Monday’s activity, said analysts.

The total canola volume was estimated at 18,505 contracts, up from Monday’s 17,739 contracts, including an estimated 14,716 contracts involved in the spread trade.

Canola was lower in the overnight market reflecting declines in soyoil and crude oil prices. Canola maintained small losses as the North American trading session began and the CBOT soy complex opened a bit lower. The US soy complex quickly rallied at the opening and that turned the canola market choppy with prices ending steady to modestly higher.

Canola was supported by the early firm tone in CBOT soy complex futures, the weak Canadian dollar and the slow pace to farmer selling, analyst said. However, balancing that off and leading to the choppiness was a slow pace to fresh demand as the market enters the traditionally
quiet Xmas season. The large supplies of canola in western Canada contributed to the weakness.

When the CBOT soybean market turned mixed at the close, ICE canola backed down to end unchanged to a bit higher.

Trade was comprised mainly of light commercial activity with some small local participation, brokers said.
Speculators are generally sidelined waiting for clear technical indications about whether they should be long or short, said analysts.

Western barley ended little changed amid lack of activity with the lack of interest in the market.
"There weren’t even bids in this market today," said a broker.

Prices are in Canadian dollars per metric ton: