ICE Canola Sees Follow-Through Strength

A commission house broker said the move above psychological resistance, at C$600 per metric ton in the March contract, encouraged some speculative buying that was supporting canola. CBOT soybeans were also seeing some follow-through strength, which was spilling over to underpin canola.

The broker said some fresh export business was being priced into the canola market, with Pakistan and Dubai the noted buyers. Domestic crushers were also showing good demand on improving crush margins.

The gains in canola were encouraging some farmer selling, which tempered the upside, according to the broker. Some profit-taking was also putting pressure on values.

In addition, market participants said improving weather conditions for the soybean crops in Argentina were keeping a lid on the oilseed markets.

At 10:40 CST, about 9,800 canola contracts had changed hands with spreading accounting for about 3,000 of the contracts traded.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:40 CST: