ICE Canola Mostly Higher, Supported By Lower Acres, Soybeans

A Winnipeg-based trader said commercial pricing could be seen on both sides of the market. He thought gains in the CBOT soy complex were accounting for some spillover strength in canola. However, soybeans and soyoil were off their highs by midsession.

Speculative buying was also a feature, as the technicals for canola were looking bullish, according to the trader.

In addition, Statistics Canada’s planting intentions report released Friday morning pegged canola acres below most trade estimates. StatsCan forecast canola acres at 14.990 million, which would be down from the 16.159 million seeded in 2008/09. The reduction in acres did provide some support for canola. However, the survey was conducted before the recent strength in the oilseed markets, and traders thought actual acres would likely end up higher than the current estimate.

Declining crush margins limited the gains in canola, according to the trader. The strength in the Canadian dollar was also a factor limiting the upside.

As of 10:50 CDT, about 7,700 canola contracts had changed hands, with inter-month spreading accounting for about a third of the activity.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:50 CDT: