ICE Canola Strengthens Following Soybeans

"Canola is flying higher as the soybeans explode to the upside," said a canola trader.

Cool, wet weather conditions across western Canada, with small snow falling in many areas, added to the firmer tone in canola, said the trader. While the canola harvest is largely finished in Manitoba and Alberta, there is still 35% of the crop left in the fields in Saskatchewan, according to the latest provincial crop report. The trader noted that the harvest in some of the prime canola growing areas of Saskatchewan was less than 50% done, and "they’re getting snow as we speak."

Sharp advances in the Canadian dollar relative to its US counterpart limited the upside in canola. Although, the gains in soyoil and soymeal were countering the strength of the currency and keeping crush margins firm.

Soybeans have come off their highs for the day, tempering the upside in canola as well.

At 10:58 CDT, about 8,000 canola contracts had changed hands, with the Nov/Jan spread a minor feature.

Western barley futures were untraded at midsession, although the spread between bids and offers was narrowing.

Prices in Canadian dollars per metric ton at 10:58 CDT: