ICE Canola Narrowly Mixed In Very Thin Trade

Minor overnight selling was tied to slight declines in e- CBOT soybean futures. Outside markets were mixed, with equities higher and crude oil futures trading at lower levels.

Analysts believe canola could improve slightly if CBOT soybeans open steady to fractionally higher, as expected although mainly consolidative trade is likely in US grain and oilseed markets Wednesday.

The strength of the Canadian dollar will be an undermining influence.

However, commercial buying tied to the covering of old export sales and farmers’ reluctance to sell until production levels become clearer will underpin prices.

Uncertainty about the 2009/10 canola crop in western Canada will also help to buoy prices, traders said. Alberta’s bi-weekly crop report for the week ended June 18 said dryness was slowing crop and pasture development.

Provincially, surface moisture was rated as 46% poor, 34% fair, 19% good, and only 1% excellent. Central and northern regions of Alberta were the driest.

Parched regions of Saskatchewan have recently received much- needed rains although their effect on the driest fields remains unclear.

As of 9:05 CDT, only 135 canola contracts had changed hands.

In early activity, western barley futures, both the old and revised contracts, were untraded and unchanged from Tuesday’s closing values as of 9:05 CDT. Analysts say there are indications, though, that new crop barley will be supported by a smaller 2009/10 crop size and good domestic feed demand depending on how pastures and weather develop.

Prices in Canadian dollars per metric ton at 9:05 CDT: