ICE Canola Slightly Higher Reflecting Light Demand

Early support in canola came from the advances seen overnight in the e-CBOT soybean complex and from the general firmness in the cash markets, brokers said.

Steady elevator company demand, as they try to line up supplies for the September export program, helped to bolster the nearby months, traders said.

Frost concerns also continue to provide support as the crop approaches traditional frost dates in western Canada. Currently, some private US forecasters are calling for possible frost next week. Overnight frost did occur again in the western portions of the Peace River region of Alberta.

Steady domestic crusher demand was supportive as was the pricing of old export business by commercials.

The reluctance of producers to deliver canola into the cash pipeline in western Canada was helping to keep a firm floor under values.

The upside in canola was being limited by the downturn in CBOT soybean and soyoil futures shortly after the start of the North American day session.

Good weather conditions expected across the Canadian prairies over the next week or so was viewed as an undermining price influence. Environment Canada is calling for warm temperatures and generally sunny skies over much of Western Canada through to the middle of next week.

The absence of fresh export demand and sentiment that canola is overvalued in comparison to other oilseeds, further tempered the upside in the commodity, brokers said.

There were an estimated 3,629 canola contracts traded at 10:35 CDT. Of the contracts traded 208 were spread related.

There were 177 western barley futures traded as of 10:35 CDT. Of the contracts traded, 114 were spread related. Poor demand along with weak CBOT corn futures helped to push barley futures down, brokers said. Activity was mainly a light commercial affair.

Prices in Canadian dollars per metric ton at 10:35 am CDT: