ICE Canola Mixed, Lacking Clear Direction

Canola was reacting to conflicting outside market signals on Tuesday, which kept prices bouncing around a tight range, said a broker. He thought the activity was largely stemming from heavy fund buying in the gold markets. He said the funds were buying gold in an attempt to weaken the US dollar and prop up commodities, which they are long in. The resulting gains in the CBOT soy complex provided some underlying support for canola, said the broker.

However, the outside market activity was also causing the Canadian dollar to strengthen, which weighed on canola prices, said the broker.

The news from the Canola Council of Canada Monday that there was still no resolution to the current trade dispute with China also put some pressure on canola prices. Although, the broker noted that "China will do what they want to do," and the outcome was never really in doubt. He expected that China will eventually back away from their requirements for blackleg free canola and return as buyers when they once again need the supplies.

Forecasts calling for sunnier weather over the next week also put some pressure on canola, as producers should be able to make some headway on the remaining canola harvest, said the broker.

At 11:03 CST, about 7,000 canola contracts had changed hands.

Western barley futures were untraded and unchanged at midsession.

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