ICE Canola Stronger On Weather, Catching-Up To Soybeans

"It’s a full blown weather market," said a canola broker. He said most of the concern was with the US soybean crop, although wet conditions in Canada have delayed the harvest on 15% to 20% of the canola crop.

The US weather were starting to look more favourable for the crops on Tuesday, which put some pressure on the soy complex, said the broker. However, he said there was still enough uncertainty that large price swings were possible.

Western Canadian farmers should have a window for making some harvest progress later this week, which was limiting the upside in canola, said the broker.

Strength in the Canadian dollar was also bearish for canola, as the currency was up by more than a cent compared to its US counterpart on Tuesday.

The broker thought volatility in the outside currency, energy, and commodity markets could spill into the oilseeds and move prices one way or the other.

At 11:06 CDT, about 9,900 canola contracts had changed hands, with the Nov/Jan spread a minor feature.

Western barley futures were steady to lower in light trade. Spreading was a feature of the 60 contracts traded, with losses in CBOT corn putting some pressure on barley values.

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