ICE Canola Strengthens On Crusher Demand, Soy Gains

Some of the early strength in canola came from the gains overnight in Malaysian palm oil, e-CBOT soybeans, and Matif rapeseed futures.

Domestic processors were said to be aggressively buying canola in view of very profitable crush margins, brokers said. There were ideas that most crushers have now booked canola to cover processing needs for the next six months out.

The absence of marketings by producers also helped to lift canola, with most farmers said to be concentrating on spring fieldwork and planting in view of improved weather conditions across most of western Canada, traders said.

Additional strength in canola was coming from light technically based speculative buying. Gains in global crude oil values were also seen as supportive.

Some position evening ahead of Friday’s grain stocks in all positions report from Statistics Canada was a small feature of the activity.

The upside in canola was being limited by the firm Canadian dollar and the lack of fresh export business being put on the books, traders said. A small reduction in routine export demand also limited the upside. Japan, one of Canada’s regular canola customer was off this week in celebration of that country’s Golden Week holiday’s.

Talk of active planting progress was viewed as an undermining price influence in canola, brokers said.

There were an estimated 5,855 canola contracts traded at 10:59 CDT.

At 10:59 CDT, no western barley futures had changed hands.

Prices in Canadian dollars per metric ton at 10:59 am CDT: