ICE Canola Pressured Lower By Losses In Soybeans

A downturn in CBOT soybeans spilled into the canola market and accounted for some of the selling pressure, according to traders. However, soybean oil was still holding above unchanged, which was supportive for canola crush margins.

Farmer deliveries are thought to be slowing down in western Canada, limiting the downside. Exporter demand was also cited as a supportive price influence.

Position evening ahead of Friday’s Statistics Canada production estimates was expected to keep activity choppy in the canola market. Traders are generally expecting upward revisions to StatsCan’s last canola estimate of 9.5 million metric tons. However, the actual production number will likely not be known until the next report in December, as the latest survey was taken before most of the yields were known.

The Canadian dollar was weaker Thursday morning, providing some underlying support for canola.

At 10:46 CDT, about 5,500 canola contracts had changed hands, with the Nov/Jan spread a minor feature.

Western barley futures were steady to weaker in quiet trade. Only 10 barley contracts had traded by midsession.

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