ICE Canola Posting Small Gains In Early Activity

Traders said the weaker tone in the Canadian dollar was providing some support for canola. A lack of farmer selling also underpinned canola, according to traders. While North American weather conditions are generally thought to be improving, traders also said there was still enough concern about the potential for frost damage in western Canada to keep canola supported.

However, any gains in canola could be limited by expectations for a weaker start in the CBOT soy complex, said traders. Overnight losses in Malaysian palm oil and European rapeseed, along with weaker crude oil values were also seen as bearish for canola.

Statistics Canada releases its first production estimates of the crop year on Friday, and some position evening ahead of the report was expected.

About 2,660 canola contracts had traded as of 8:49 CDT, the bulk of that in the November futures month.

Western barley futures were untraded and unchanged in overnight activity, but could be headed lower given the calls for a weaker start in CBOT corn.

Prices in Canadian dollars per metric ton at 8:49 CDT: