ICE Canola Strengthens Following Soybeans

Concerns about US weather conditions helped trigger the upward move in soybeans, with speculative buying adding to the strength. Canola traders said cool, wet Canadian weather conditions were also supportive for canola, as the adverse weather delays the final stages of harvest.

However, the canola harvest is much farther along than soybeans, and expectations that the large crop will eventually come in limited the advances in canola, said a trader.

Activity in canola was described as range-bound, with the market lagging the soy complex to the upside.

Routine end-user pricing provided some support for canola, while the advances likely brought in some farmer selling.

Strength in the Canadian dollar limited the upside in canola, cutting into crush margins and making the commodity more expensive to exporters, said traders.

The USDA releases updated production and supply/demand reports on Friday. Positioning ahead of the report accounted for some of the activity in canola.

At 10:55 CDT, about 4,400 canola contracts had changed hands. Spreading was a feature, accounting for about 2,000 of the contracts traded.

Western barley futures were steady to higher, taking some direction from CBOT corn. There were 94 barley contracts traded by midsession.

Prices in Canadian dollars per metric ton at 10:55 CDT: