ICE Canola Mixed, Lacking Clear Direction

With CBOT soybeans called mixed to start the North American session, traders thought the canola market may also be hard pressed to see a decisive move one way or the other.

Crude oil was slightly weaker early in the day, which should put some pressure on the oilseed markets – including canola.

A lack of significant export demand should also limit any upside potential in canola. In addition there was some unconfirmed talk in the market that China may have cancelled some canola purchases.

On the other side, weather concerns in western Canada should remain supportive for canola. Although, forecasts are starting to look more favourable for both the dry areas of Alberta and Saskatchewan, and the wetter areas of the eastern Prairies.

About 920 canola contracts had traded as of 8:54 CDT, with intermonth spreading a small feature.

Western barley futures were untraded and unchanged as of 8:54 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 8:54 CDT: