ICE Canola Slightly Firmer, Canola Meal News Supportive

Reports were circulating in the market that the US Food and Drug Administration had lifted its restrictions on canola meal imports from a Cargill plant in Saskatchewan. While there was no word on the other four Canadian canola crushing plants still barred from shipping canola meal to the US, due to salmonella concerns, a broker said the lifting of the restrictions on the one plant was generating some buying interest in the market.

Weakness in the Canadian dollar provided some further support for canola, as the weaker currency makes the commodity more attractive to export customers.

Losses in the CBOT soy complex were putting some pressure on canola values, according to the broker. However, he added that any farmer selling was only coming in on a scale-up basis, which limited the downside.

At 11:00 CST, about 9,400 canola contracts had changed hands, with the January/March spread accounting for the bulk of the contracts traded. The January/March spread was widening, as participants roll their positions out of the nearby January contract into the March futures.

Western barley futures were steady to higher at midday, with about 34 contracts traded. A broker said any gains in the lightly traded market were being hampered by the fact that cash bids are currently cheaper than the futures market, which means most end users are making their purchases in the cash market on a hand-to- mouth basis.

Prices in Canadian dollars per metric ton at 11:00 CST: