ICE Canola Strengthens Following Soyoil

A Winnipeg-based broker said early weakness in the product values had weighed on canola, but a quick jump higher in soyoil provided some spillover support for canola. "We’re just tagging along," he said.

A weaker tone in the Canadian dollar added to the gains in canola, according to the broker. He said commercial buying was a feature, with improving crush margins encouraging some routine exporter and domestic crusher pricing. Some speculative demand was also noted, as the charts continue to point higher in canola.

While some scale-up farmer selling tempered the advances, the broker said most growers were on the sidelines waiting for higher prices down the road. Cold weather was also limiting some farmer deliveries in western Canada.

Much needed rains in Argentina also put some pressure on canola, as the improving prospects for the soybean crops there weighed on the oilseed markets, according to the broker.

At 10:40 CST, about 6,700 canola contracts had changed hands with spreading a minor feature.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:40 CST: