ICE Canola Mixed in Light Trade

Supporting canola values were overnight gains made by both Malaysian palm oil and European rapeseed, market watchers said.

Despite recent declines in crush margins, demand from domestic crushers has still been strong, brokers said.

Significant snowfall across many parts of Manitoba, Saskatchewan, and Alberta during the weekend was limiting elevator deliveries from farmers, which was a bullish factor on values, analysts said.

Also supporting the market were fears that farmers will not plant enough acres in 2011 to meet the demand, as stocks are below average at the time being, brokers said.

Downward pressure on the canola market was found from the forecast for precipitation in Argentina, which is expected to give a boost to soy crops in the South American nation.

The pace of canola exports, while still ahead of last year’s pace to date and ahead of expectations to date, has slowed in recent weeks. Part of the deterring demand is thanks to China’s announcement to take action to limit inflation, experts said.

The Canadian dollar was stronger early Monday, which also put bearish pressure on the market, analysts said.

At 08:35 CST, there had been about 1,000 canola contracts traded.

Western barley futures were unchanged and untraded early Monday.

Prices in Canadian dollars per metric ton at 08:35 CST: