ICE Canola Turns Higher, Following Soybeans

Updated USDA production and stocks reports were seen as bearish for soybeans, which weighed on that market early in the day. However, soybeans and soyoil have since turned higher, lending some spillover strength to canola as well, according to a canola trader.

Routine exporter pricing also provided some underlying support for canola, said market participants.

Farmer hedges continued to weigh on the canola market, as the harvest moves forward in western Canada, according to a trader. However, he thought the farmer selling was starting to slow down, as many producers are satisfied with their cash flow needs for the time being and are now shutting their bins in hopes of seeing higher prices down the road.

The Canadian dollar was up by more than a cent relative to its US counterpart on Wednesday. The strong currency weighed on canola and tempered the upside, as it cuts into crush margins and makes the commodity less attractive to exporters.

Statistics Canada releases its latest production estimates on Friday, October 2. Traders are expecting upward revisions of a million tons or more to StatsCan’s last canola estimate of 9.5 million metric tons.

At 11:06 CDT, about 6,000 canola contracts had changed hands, with the Nov/Jan spread a minor feature.

Western barley futures were steady to weaker in quiet trade. About 120 barley contracts had traded by midsession.

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