ICE Canola Narrowly Mixed, Pressured By C$

Canola activity was light with the estimated volume at 11:15 CDT at 5,503 contracts with over 2,000 contracts involved in the intermonth spread trade.

Canola was undermined by the very strong Canadian dollar which offset support from the firm tone in Chicago Board of Trade soy complex futures. "The (Canadian) dollar is flirting with US$0.92, up over a penny today..that’s has got to be hurting demand," said a trader.

Also weighing on the market was the favourable growing conditions forecast through end of July and bearish technical signals. Demand was also lackluster with poor crush margins and sluggish fresh export interest contributing to the early weaker tone.

However, canola turned narrowly mixed late in the session
as the firm US soy complex, slow farmer selling and ideas that canola is oversold and due for a correction gave some support, said brokers. "I’m surprised canola isn’t stronger when you’ve got (CBOT) soybeans up over 20 cents and soyoil up 25 points," said a trader.

The buying is mainly coming from exporters and the Japanese while selling is mainly commercial.
Light speculative offerings were noted.

Western barley is higher in light trade.
The market firmed on the lack of country movement, and the strong upward surge in the CBOT corn market, analysts said. End user demand accounted for the buying.

The total estimated barley volume at 11:12 CDT was 80 contracts.

Prices at 11:13 CDT in Canadian dollars per metric ton: