ICE Canola Mixed, Demand Concerns Bearish

Export sources acknowledged the rumours about China, but indicated that the purchases of Canadian canola were deferred, and not cancelled by China. "Posturing, is what this is all about," a source said.

Declines in CBOT soyoil futures helped to spark some selling in canola as did the weakness in global crude oil futures.

The absence of fresh export business being put on the books, contributed to the selling interest in the market, traders said.

Support in the market continued to come from the lack of canola in the cash pipeline to meet existing commitments at the export terminals, brokers said.

Gains in CBOT soybean values helped to slow the price drop as did continued concerns about the weather for the development of the canola crop in Western Canada. The forecasts for the Canadian prairies, meanwhile, are starting to look more favourable for both the dry areas of Alberta and Saskatchewan, and the wetter areas of the eastern Prairies.

There were an estimated 5,085 canola contracts traded at 10:43 CDT. Of the contracts traded, 3,324 were spread related.

There were no western barley futures traded as of 10:43 CDT. Most traders have taken to the sidelines as they wait for the introduction of revised western barley contracts on June 22.

Prices in Canadian dollars per metric ton at 10:43 am CDT: