ICE Canola Supported By Higher Outside Markets

Canola values were firmer in response to advances seen in outside markets, according to brokers. Higher CBOT soybean prices, stronger crude oil futures and gains in equity markets were encouraging a firm tone in canola, they said.

Further support was tied to the covering of routine exports sales, the soft tone of the Canadian dollar and light demand from domestic processors, trade sources said.

Farmers were reluctant sellers, which helped to underpin canola prices as well. "They’ve still got their hands in their pockets," said a Winnipeg trader.

However, CBOT soyoil futures had turned mostly lower and that was beginning to act as a weight on canola values, market watchers said.

Large on-farm supplies of canola in western Canada and ideas that spring canola acreage could come in at another record level were underlying bearish price influences.

Volumes in canola were very light again on Thursday on account of the Canola Council of Canada convention being held in Toronto this week. Market watchers said a number of key traders were away from their desks and that was capping the market’s activity.

As of 11:06 CDT, only 2,097 contracts had been traded, of which 1,116 were tied to inter-month spreading.

Western barley futures were unchanged in very quiet trade. Only 62 contracts had changed hands as of 11:06 CDT.