ICE Canola Moves Higher In Early Activity, Follows Soybeans

Overnight strength in the market was encouraged by gains in outside markets including e-CBOT soybeans, Malaysian palm oil futures and Chinese rapeseed futures.

The higher opening start of Chicago soybeans with the start of the North American session encouraged further upside in canola prices, market watchers said.

Underlying support for the market was tied to improved corn planting weather in the Midwest and ideas that will encourage more corn acres and fewer US soybean acres.

Reports that the Argentine soybean crop could come in as low as 31 million metric tons also fuelled advances in North American oilseed markets, brokers said.

Friendly technical signals and speculative demand are expected to underpin canola prices on Monday as are gains in equities and crude oil futures.

Limiting the upside, however, was the firm tone of the Canadian dollar and increased farmer selling in response to attractive bids in the cash market, traders said.

As of 9:35 CDT, 4,569 canola contracts had been traded, a portion of which were tied to inter-month spreading.

Interest in the western barley market was nearly non- existent, with only 1 contract having been traded as of 9:35 CDT.

Prices in Canadian dollars per metric ton at 9:35 CDT: