ICE Canola Shifts To Small Gains As CBOT Soy Complex Firms

Canola contracts had been posting small declines in early activity but rose as US dollar weakness encouraged a turnaround in CBOT soybean and soyoil futures following a lower start.

Helping to underpin canola and soybean futures were supportive world vegetable oil fundamentals, as evidenced by seven-month highs touched in overnight Malaysian palm oil trade. "Palm oil stocks are tightening and vegetable oil demand seems fairly strong," a trader said.

Light commercial buying and the slow pace of farmer selling, partially due to spring road bans, also accounted for the minor advances in canola futures, market watchers said.

Movement in North American oilseed markets was generally subdued, however, as support was offset by significant declines in crude oil futures and the soft tone in equity markets on Monday, traders said.

The moderately firm tone of the Canadian dollar was also helping to discourage buying interest in canola.

Brokers said canola’s inability recently to attract either fresh export business or significant speculative buying was limiting the market’s upside potential.

There were 4,303 canola contracts traded as of 10:45 CDT, a significant portion of which were spread-related.

In the western barley market, meanwhile, prices were unchanged amid thin trade. Fifty barley contracts had traded as of 10:45 CDT in spread-dominated activity.

Prices in Canadian dollars per metric ton at 10:45 CDT: