ICE Canola Recovers After Monday’s Late Losses

Traders said the declines at Monday’s close were overdone, leaving canola open to a bounce higher. Calls for a firmer start in the CBOT soy complex, along with overnight gains in Malaysian palm oil, were also encouraging some spillover buying in canola.

While crop conditions are starting to improve in some areas of western Canada, the lowered production prospects this year remain supportive overall, according to traders who noted that dryness was becoming more of a concern in the Peace River region of Alberta, while excessive moisture continues to cause problems in most other areas of the Prairies.

Farmers remain reluctant sellers, providing some further support for canola.

A slightly firmer Canadian dollar could limit the advances in canola, according to traders. Firm technical resistance was also seen as a limiting factor.

There were also ideas that the weather problems in western Canada have all been priced into the market for the time being, lessening the need to take values higher.

About 1,020 canola contracts had traded as of 8:45 CDT.

Western barley futures were untraded and unchanged.

Prices in Canadian dollars per metric ton at 8:45 CDT: