ICE Canola Stronger, Following Soyoil

Commercials and speculators were both on the buy side, as the canola market reacted to the gains in CBOT soybeans and soyoil, according to a canola broker.

The ongoing production uncertainty across western Canada also provided some underlying support to canola, although the broker noted that conditions were starting to look more favorable for development.

Farmers were becoming more active sellers, according to the broker, limiting the upside in canola.

"It’s becoming a bit of a battle here in terms of getting it to go higher," said the broker noting that speculative profit-taking was also weighing on values.

He said a sharply stronger tone in the Canadian dollar was also serving to limit the upside in canola, with declining crush margins taking away some of the end-user demand.

At 11:06 CDT, about 4,400 canola contracts had changed hands, with the November/January spread a minor feature.

Western barley futures were untraded and unchanged.

Prices in Canadian dollars per metric ton at 11:06 CDT: