ICE Canola Strengthens, But Lagging Soybeans

A Winnipeg-based broker said gains in the CBOT soy complex were spilling over to pull the canola market higher as well on Tuesday. However, he said the buying interest in canola was more subdued, causing the market to lose ground overall.

The fact that canola was looking cheaper compared to soybeans was likely leading to some end user pricing, although the broker said there was no significant fresh buying interest coming forward from the exporters or domestic crushers.

Speculators were some of the noted buyers in canola. The broker said the fund traders were bullish on the oilseeds in general and were now just waiting for a fundamental trigger to add to their long positions.

A lack of farmer selling also provided some underlying support for canola, as most growers are also looking ahead to higher prices going forward and have moved to the sidelines for the time being, said the broker.

At 11:13 CST, about 16,200 canola contracts had changed hands, with spreading a feature as participants were rolling out of the nearby January contract.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 11:13 CST: