ICE Canola Lower On Weak Vegoils

Canola saw a light trade as an estimated 931 contracts had traded as of 08:48 CDT.

Canola was lower in the overnight market as international vegetable oil prices posted losses and the e-cbot soybean market declined, traders said. Canola is expected to continue to see losses as the North American trading gets underway with the Chicago Board of Trade soy complex expected to be lower this morning, traders said.

Canola is also under pressure this morning from the firm tone in the Canadian dollar and bearish technical signals with yesterday’s chart performance described as "disappointing" by traders.

Evening up ahead of the weekend and the overall favourable growing conditions in Manitoba and Saskatchewan are weighing on the market as well. Farmer selling has also seen a slight increase out of Manitoba and Saskatchewan as farmers are becoming more comfortable with the idea that their crop will make it through.
However, cash dealers note that the overall bullishness amongst farmers is keeping the overall selling pace slow, despite this week’s small increase..

Underpinning the market was continued strong demand with traders noting the rising open interest as a sign that commercials are adding to their long positions in the market.

Weather concerns also are supportive as frost appeared in the Peace River area overnight. Traders feel it did not significantly affect the crop, but they note it is an indication that the crop is vulnerable this year and temperatures are well below normal.
Single digit lows are forecast in many locations in Alberta this weekend, they added.

Commercials were the main traders in the small overnight trade with some European selling noted.

Western barley is untraded and unchanged with the market expected to be under pressure from ideas that feed supplies will be large this winter even if barley production is smaller than normal, brokers said. They also noted that the Nov contract is "reasonably" in line with the cash market right now.

Prices at 08:47 CDT in Canadian dollars per metric ton: