ICE Canola Strengthens Following Outside Markets

Malaysian palm oil and European rapeseed futures were both stronger in overnight trade. Calls for a higher start to the CBOT soy complex were also providing some underlying support for canola, according to traders.

Farmers remain reluctant sellers of their canola, while commercial demand is holding steady, which should also keep values supported.

An analyst said the technical bias was turning higher in canola, adding to the firmer tone.

However, supplies remain large, both in Canada and for the oilseed markets globally, which should limit the upside in the market, said an analyst.

Activity could also turn choppy and subdued, as participants could be reluctant to move prices too far one way or the other ahead of Tuesday’s USDA supply/demand reports.

The Canadian dollar was relatively unchanged Monday morning, lending little direction to the canola market.

About 7,100 canola contracts had traded as of 8:57 CST, with inter-month spreading a feature as participants roll their positions out of the nearby March contract.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:57 CST: