ICE Canola Narrowly Mixed, Consolidating Recent Gains

Concerns that excessive moisture in Saskatchewan and Manitoba will leave many acres intended for canola unseeded this year, while causing damage to other crops already in the ground, helped canola rally sharply higher earlier this week. With wet weather still in the forecasts through the weekend, the moisture situation remained supportive for canola on Wednesday. However, traders also said the gains may be starting to look overdone from a technical standpoint, leaving the market open to some profit-taking.

Calls for a slightly firmer start to the CBOT soy complex could provide some underlying support for canola, according to traders. However, US crop conditions remain generally favourable and the upside in soybeans may be limited.

Overnight losses in Malaysian palm oil futures, a firmer Canadian dollar, and prices nearing technical resistance, were also expected to weigh on canola values.

About 6,500 canola contracts had traded as of 8:29 CDT, with the July/November spread the feature of the early activity.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:29 CDT: