ICE Canola Mixed On Position Evening, Weather

Most of the strength in the July contract was said to be stemming from speculative positioning, as traders exit the nearby July contract.

A weaker tone in the Canadian dollar Tuesday morning also provided some underlying strength for canola, according to traders.

Recent wet weather across western Canada should also be keeping canola values well supported, as the excessive moisture has delayed seeding in some areas and caused some crop damage on some already planted fields. However, the forecasts are turning drier, and traders generally remain of the opinion that the canola crop will be record large this year.

Calls for a lower start to the North American session for the CBOT soy complex, after the US markets were closed Monday for Memorial Day, were also putting some spillover pressure on canola values.

Losses in the outside equity and commodity markets, including crude oil, could also lead to some selling in canola on Tuesday.

About 720 canola contracts had traded as of 8:33 CDT.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:33 CDT: