ICE Canola Mixed, CBOT Gains Supportive, C$ Tempers Gains

Early advances in canola came on the heels of the upward price action seen overnight in e-CBOT soybean values and the gains seen in European rapeseed futures.

Strength in canola was also coming from continued concerns about slow planting progress in western Canada due to adverse weather conditions, brokers said. Weather outlooks calling for drier and warmer weather by the end of the week were seen as helpful, but market participants cautioned that fields in a number of locations were very wet and will require time to dry out before putting any heavy machinery on them.

Friendly chart signals and some light buying by speculators in the deferred contracts helped to augment the advances in those contracts, brokers said.

Strength in global crude oil also provided some minor support for canola.

The upside in canola, particularly the nearby July future was being tempered by a drop off in crusher demand and talk of increased hedge offers from elevator companies, traders said.

Strength in the Canadian dollar was also viewed as an undermining price influence.

There were an estimated 6,852 canola contracts traded at 11:10 CDT.

At 11:10 CDT, 90 western barley future had changed hands with most of the volume consisting of spreading between commercials, brokers said.

Prices in Canadian dollars per metric ton at 11:10 am CDT: