ICE Canola Lower With US Soyoil

Canola saw an active trade with intermonth spreading continuing to enhance volumes.

The total canola volume was estimated at 15,161 contracts, up from Tuesday’s 14,461 contracts, including an estimated 10,320 contracts involved in the spread trade.

Canola was narrowly mixed in the overnight market reflecting the uncertainty ahead of Wednesday morning’s US Department of Agriculture supply-demand reports. Canola continued to be mixed with a weak tone as the North American trading session got underway and the US soyoil market turned lower. Canola ended a bit lower.

Canola was pressured down by the weakness in the US soyoil futures
and sluggish fresh exports.
Eroding crush margins also undermined the market.

Underpinning the market and leading to a choppy tone throughout the session was an increased focus on problems in the canola crop due to weather as dryness plagues some areas of Saskatchewan and Alberta while frost has been a problem right across western Canada this spring.

Ideas that canola acres will be much lower than early trade ideas underpinned values as well. The weak Canadian dollar and friendly technical signals prompted some support as well, traders said.

Routine exporter and crusher buying was augmented by some early commodity fund buying with the selling mainly commercial.

Western barley ended steady to a bit lower in very small activity. The lack of interest continues to be prompted by the upcoming introduction of a revised western barley contract changing the delivery area to Canada’s main cattle feeding area in southern Alberta, brokers said.

The total barley volume was estimated at 2 contracts, down from 97 contracts on Tuesday, with the entire trade comprised of intermonth spreading.

Prices are in Canadian dollars per metric ton: