ICE Canola Mixed, On Strong Loonie

Canola had a moderate trade with intermonth spreading accounting for almost half of the volume as commercials and commodity funds were rolling July contracts into the Nov futures.

The total canola volume was estimated at 12,770 contracts, up from Tuesday’s 11,740 contracts, including an estimated 6,292 contracts involved in the spread trade.

Canola saw gains in the overnight session, prompted by advances in crude oil and international vegetable oil prices. Canola extended its gains as the North American trading session got underway and the Chicago Board of Trade soy complex posted moderate advances. Canola ended mixed with small losses in the old crop and modestly gains in the new crop.

Canola drew much of its support from the CBOT soy complex, however canola’s gains were less than the US market as the very strong Canadian dollar weighed on values. The old crop was also undermined by sluggish fresh exports and the spread trade, analysts
said. Friendly technical signals gave support across the market as did the firm tone in crude oil.
Farmer selling was also sluggish as they concentrated on planting. The new crop also drew some support from the lagging planting due to recent inclement weather.

However, trimming the market back was more favorable planting weather forecast for western Canada by this weekend and the highest level for the Canadian dollar against the US currency in over 6 months. Canola moved off its 8 month highs when CBOT soybean futures backed down.

Exporter and crusher buying was augmented by commodity fund buying with their buying evident in both the July and Nov contracts. Traders estimated their July buying at 500 to 1,000 contracts and their Nov buying at 500 contracts. The selling was mainly commercial comprised of light elevator company selling and exporter liquidation selling.

Western barley ended lower in very light trade. The lack of interest left the market only lightly traded and little changed, brokers said.

The total barley volume was estimated at 107 contracts, up from 90 contracts on Tuesday, including an estimated 102 contracts involved in the spread trade.

Prices are in Canadian dollars per metric ton: