ICE Canola Pressured By Harvest

Canola saw a moderate trade with much of the volume comprised of intermonth spreading as Nov/Jan spreading by commercials was noted.

The total canola volume was estimated at 13,639 contracts, up from Tuesday’s 9,007 contracts.

Canola was lower in the overnight session reflecting losses in international vegetable oil markets. Canola maintained its declines as the North American trading session got underway and the Chicago Board of Trade soybean market posted losses. Canola was lower for the bulk of session ending with small declines.

Canola was pressured down by the advancing harvest and the resulting steady farmer selling. Ideas that the canola crop could be as much as 1 mln metric tons larger than the last StatsCan forecast of 9.5 mln tons also weighed on the market, traders said. Bearish technical signals, losses in CBOT soyoil futures and favourable weather forecast into the weekend contributed to the softer tone.

Export demand was sluggish and that was a bearish influence with traders indicating that no significant fresh export demand is expected until the Nov contract drops back to the $375-$377 per ton level.

Giving some support was the weak Canadian dollar.

Exporters, pricing old sales, were the main buyers with only light routine crusher pricing noted. The selling came from commercials with heavier levels of elevator company hedging evident.
Commodity fund selling was noted with their selling estimated at 450-700 Nov contracts.

Western barley posted losses in light trade. The advancing harvest and sluggish demand weighed on prices offsetting any support from the gains in CBOT corn, brokers said.

The total barley volume was estimated at 52 contracts, down from 57 contracts on Tuesday.

Prices are in Canadian dollars per metric ton: