ICE Canola Strengthens Following Soy

A Winnipeg-based broker said tighter than expected US soyoil stocks helped take that market higher, which spilled into canola as well. He said gains in crude oil and the international equity markets were also supportive for canola.

Some routine exporter pricing added to the firmer tone in canola, according to the broker.

Steady farmer selling was only coming forward on a scale up basis, doing little to temper the gains in canola, said traders. Fund selling was also largely absent from the market.

The Canadian dollar was sharply stronger on Wednesday, which weighed on canola. A firmer currency cuts into domestic crush margins and also makes canola less attractive to export customers.

US markets will be closed Thursday for the US Thanksgiving holiday, while Canadian markets will remain open. With activity in the US markets turning thinner ahead of the holiday, traders said some volatility could be expected on both sides of the border.

At 10:43 CST, about 6,700 canola contracts had changed hands, with spreading accounting for about half of the total trade.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:43 CST: