ICE Canola Mixed, Strong C$ Bearish For Prices

Support in canola overnight had come from the advances seen in e-CBOT soybeans, Malaysian palm oil and Matif rapeseed futures. Strength in CBOT soybean futures with the start of the North American day session also influenced some early price support for canola.

Strength in canola was also stemming from routine exporter pricing of old business.

Concerns about drought conditions in parts of western Canada and the potential for reduced yield potential in the newly seeded canola fields, helped to limit the downside.

Declines in canola were being influenced by a pick up in elevator company hedge selling, with producers in the western regions of the Canadian grainbelt beginning to concentrate on marketing now that planting in those areas was coming to a conclusion.

A pull-back in the advances seen by CBOT soybean futures was seen as a bearish factor for canola, with the forays into negative territory by CBOT soyoil also sparking some selling of the commodity, traders said.

Weakness in canola was also being tied to the absence of aggressive crusher demand and the lack of confirmation regarding fresh export business, brokers said.

Improved weather conditions for planting operations in the eastern regions of the Canadian prairies helped to undermine some contracts, traders said.

There were an estimated 10,113 canola contracts traded at 10:46 CDT.

At 10:46 CDT, 171 western barley future had changed hands. The absence of willing sellers and a small pick up in commercial demand provided the support seen in the nearby July future, brokers said.

Prices in Canadian dollars per metric ton at 10:46 am CDT: