ICE Canola Lower On Big Losses In US Soy

Canola noted an active trade with the bulk of the volume comprised of intermonth spreading with commercials evening up ahead of the month end when the Jan becomes the cash month, analysts said. As of 11:17 CST the estimated canola volume was 15,740 contracts with over 11,200 contracts involved in the spread trade.

Canola was mainly pressured lower by the weakness in the US soy complex and the eroding crush margins.
Uncertainty about fresh export demand and the large supply of canola in western Canada were minor bearish features of the trade.

Canola’s losses were much smaller than the normally dominant US soy market as a steep slide in the Canadian dollar today, the lack of farmer selling and light steady demand in the thin pre-holiday trade gave some support, traders said.

Technical traders said that they saw the canola market as consolidating in its current trading patterns as it prepares for a big move one way or the other.
That has sidelined most technical trading as they await a definitive signal.

Traders noted that canola’s big moves in the holiday season tend to come after Dec 28th and early in the new year.

Exporters were routine buyers with light crusher buying noted. Small speculative trade was evident. The selling was mainly commercial.

Western barley is unchanged in light commercial trade. The lack of country selling is giving support and keeping trading volumes small, brokers said.

The total barley volume was estimated at 19 contracts as of 11:26 CDT.

Prices at 11:27 CST in Canadian dollars per metric ton: