ICE Canola Lower On Weak US Soy

Canola trade was light with a modest amount of intermonth spreading noted. As of 11:20 CDT, an estimated 4,841 contracts have changed hands.

Canola was pressured down by the moderate losses in CBOT soy complex futures and the favorable crop weather, said traders.
Forecasters are calling for generally favorable growing weather in western Canada through the end of the month.

"Everyone is starting to revise their (canola) yields higher with each day of this weather," said an analyst.

Contributing to the weakness is the continued lack of fresh export activity.
The exporter pricing that is in the market is felt to be just routine with some small Japanese pricing also noted.
"The order flow
we’re seeing on the board looks like nothing more than small routine activity," said a trader.

However canola declines are smaller than the US market as the Canadian dollar has dropped sharply from steep gains to small losses, said traders. "The dollar slide is certainly helping canola out today," said a broker. The lack of farmer selling and supportive technical signals also helped to limit the price slide.

Routine exporter and crusher buying met mainly commercial selling with some light speculative selling also evident.

Western barley posted moderate losses in a light commercial trade that is focused in the Nov contract.

The weakness in CBOT corn, ideas that barley is still overvalued and expectations for the Canadian Wheat Board to lower its feed wheat and feed barley prices in Thursday’s Pool Return Outlooks weighed on the market, brokers said.

The total estimated barley trade at 11:29 CDT was 40 contracts.

Prices at 11:30 CDT in Canadian dollars per metric ton: