ICE Canola Pressured Down By Profit-Taking

A broker said the canola market was looking slightly over-bought, and due for a profit-taking correction. He said farmers were taking the opportunity to make some sales after yesterday’s strength, while speculators were liquidating some of their long positions.

A weaker tone in CBOT soybeans also spilled over to weigh on canola, according to the broker.

Routine exporter and domestic crusher pricing did help limit the downside in canola, although the broker said the end user demand was not as aggressive on Wednesday as it has been in recent sessions.

While a profit-taking correction was to be expected in canola, the broker said that the overall uptrend remained intact. An analyst added that solid international demand for vegetable oil, coupled with the tighter Canadian canola supplies, should be keeping prices supported as well.

At 10:46 CDT, about 4,500 canola contracts had changed hands, with spreading only a small feature.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:46 CDT: