ICE Canola Lower On Soybeans, But C$ Supportive

A weaker tone in the CBOT soy complex did lead to some spillover selling pressure in the canola market, according to a trader. However, with the Canadian dollar declining by more than a cent and a half relative to its US counterpart, canola values were holding reasonably steady.

The sharply weaker Canadian dollar should make canola more attractive to exporters, and the trader said exporters were good buyers on the day. However, he thought most of the buying was likely pricing of old business.

Ongoing harvest delays for some of the later canola crops also provided some support, according to traders. Although, the majority of the harvest is complete and the weather conditions were thought to be accounting for less of the price direction in canola.

The Nov/Jan spread trade was a feature of the early activity, with domestic crushers noted sellers of the spread, according to the trader.

At 10:50 CDT, about 13,000 canola contracts had changed hands, with the Nov/Jan spread accounting for the bulk of the trade volumes.

Western barley futures were firmer at midsession, despite the weaker tone in CBOT corn. The weakness in the Canadian dollar was providing some underlying support for the lightly traded barley market, with about 100 contracts traded by 10:50 CDT.

Prices in Canadian dollars per metric ton at 10:50 CDT: