ICE Canola Remains Firm on Outside Market Gains

Canola futures took most of its overnight support from the advances posted in e-CBOT soybeans, European rapeseed and Malaysian palm oil values, brokers said.

The gains posted in both CBOT soybean and soyoil futures with the start of the North American trading day provided an additional upward boost to canola values.

Gains in canola were also reflecting steady domestic crusher demand and the pricing of some routine export business to Mexico and Japan, traders said.

Light chart related buying was also evident and helped to provide a firm price tone for canola.

The upside in canola was limited by the strong Canadian dollar and a slow down in demand from commercials at these high price levels, brokers said.

There were some elevator company hedges hitting canola, which in turn also limited the upside. Farmer deliveries into the cash pipeline, however, have been light lately with producers concentrating on spring fieldwork and seeding preparations instead of marketing, traders said.

The upside in new crop canola contracts were also being limited in part by ideas that area seeded to the crop will be higher than what was revealed by Statistics Canada in its plantings survey released April 24.

There were an estimated 3,115 canola contracts traded at 11:08 CDT.

At 11:08 CDT, no western barley futures had changed hands.

Prices in Canadian dollars per metric ton at 11:08 am CDT: