ICE Canola Turns Back Down

Overnight declines in Malaysian palm oil futures and calls for a weaker start to the North American session for CBOT soybeans were spilling over to weigh on canola, according to traders.

Bearish technical signals for canola, the strong Canadian dollar, and the advancing South American soybean harvest were also putting some downward pressure on values.

Gains in crude oil would normally be supportive for the oilseed markets, but the global political uncertainty taking crude oil higher is also making investors more cautious, causing them to exit some of the riskier agricultural markets, said traders.

An analyst said activity in canola could easily turn choppy, especially as the underlying fundamentals remain relatively supportive.

The tightening supply situation and the need to buy enough acres this spring were expected to help underpin canola. Wet conditions across much of western Canada are leading to concerns that the excessive moisture may limit some canola plantings.

The daily trade limits in canola are back down to C$30 per ton on Thursday, after expanding to C$45 per ton on Wednesday.

About 1,100 canola contracts had traded as of 8:43 CST.

Western barley futures were untraded and unchanged Thursday morning.

Prices in Canadian dollars per metric ton at 8:43 CST: