ICE Canola Moves Up On CBOT Rally, Oversold Ideas

The nearby November, January and March contracts were the contracts experiencing the bulk of the attention.

Gains overnight in Malaysian palm oil and European rapeseed futures helped to spark some early buying interest.

Strength in canola was also coming from steady domestic crusher demand and from the pricing of previously conducted export business. The buying back of previously sold positions was also generating some upward price action, brokers said.

The absence of farmer deliveries into the cash pipeline as producers concentrate on harvest operations also generated some minor support for canola, traders said.

Talk of some fresh export interest in Canadian canola was also making the rounds and was helping to underpin canola values, brokers said.

The upside in canola, however, was limited by firmness in the Canadian dollar Tuesday. The warm temperatures and sunshine which are aiding crop maturity and harvest operations also put some downward pressure on prices, brokers said.

The absence of a frost in the nearby weather outlook further restricted the price gains in canola.

There were an estimated 4,996 canola contracts traded at 10:33 CDT.

There were 175 western barley futures traded as of 10:33 CDT. The lack of willing sellers combined with small commercial demand resulted in western barley contracts being pushed higher, brokers said. The buying back of short positions by a variety of market players and the gains in CBOt corn futures also underpinned values.

Prices in Canadian dollars per metric ton at 10:33 am CDT: