ICE Canola Strengthens In Quiet Trade

The canola harvest is now largely complete across western Canada and farmer selling has backed away from the market, said a canola broker. The lack of selling pressure meant that light exporter demand was able to take values higher. Recent business to Mexico was thought to be behind some of the buying interest, according to the broker.

Gains in the CBOT soy complex were another supportive price influence for canola, according to the broker. He noted that the strength in crude oil was also supportive for the oilseed markets.

However, concerns about business to China remained a bearish influence on canola as new Chinese import restrictions came into effect over the weekend.

A stronger tone in the Canadian dollar Monday morning also weighed on canola, limiting the upside, according to traders.

At 11:02 CST, about 2,900 canola contracts had changed hands. Spreading was only a small factor, with the January/March spread accounting for about 400 of the contracts traded.

Western barley futures were steady to lower at midsession, with 20 contracts traded. Ample feed grain supplies in western Canada were thought to be weighing on values.

Prices in Canadian dollars per metric ton at 11:02 CST: