ICE Canola Mixed, Lagging Gains In CBOT Soy Complex

The absence in canola of speculative buying was thought to be responsible for the lag in canola futures compared to US soybean contracts, traders said. Although there is some speculative fund activity at play in the canola market, there is less than in US soybeans, likely on account of canola’s bearish fundamentals, they said.

Although canola is attractively priced right now, commercial buyers won’t push the market higher the same way as speculative participants in US soybeans, a Winnipeg broker said.

Also weighing on canola contracts was the bearish tone in equities and declining crude oil futures, which had slipped below US$50 a barrel on Tuesday.

The firm tone of the Canadian dollar, which rebounded from early losses, was discouraging gains in canola prices as well, market watchers said.

However, the slow pace of farmer selling helped to provide a floor for the market. Some producers are hoping to see a seasonal rally in canola prices during the planting season and are holding off on sales until then, said a broker.

As of 11:03 CDT, 9,187 canola contracts had changed hands but of that amount, 8,046 trades were spread-related.

Western barley futures were lower in light, commercially- dominated trade. There were 292 barley contracts traded as of 11:03 CDT, of which 132 were tied to spreading.

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