ICE Canola Mixed In Choppy, Erratic Trade

Soybean futures in Chicago were providing mixed signals to canola prices, traders said. The front months were trying to move higher and had briefly succeeded while new crop contracts were lower on ideas of large 2009/10 acreage, they said.

There was downward pressure on the market from CBOT soyoil futures, which continued to trade at weaker levels. Losses in equity markets and crude oil futures Monday added to the weight on canola values.

Minor support for North American oilseed markets was associated with a soybean output estimate released April 3 by the Buenos Aires Grain Exchange, which pegged the Argentine soybean crop at 39.4 million tonnes, about 2 million tonnes less than their previous estimate. The Argentine Agricultural Secretariat has yet to release their revised soybean production estimate.

Gains in some canola contracts were also encouraged by the Canadian dollar, which was trading at a weaker level versus the US dollar.

Also, canola futures look as if they’re trying to turn the corner technically, said a Winnipeg trader, noting that in overnight trade the May canola contract hit a recent high of $436.10.

As of 11:03 CDT, 5,296 canola contracts had been traded, with a good portion of the activity tied to spreading.

Western barley futures were lower but the market was very thinly traded. Only 120 contracts had changed hands as of 11:03 CDT.

Prices in Canadian dollars per metric ton at 11:03 CDT: