ICE Canola Turns Higher In Choppy Trade

The strength in canola was seen stemming from the gains in CBOT soybeans and soymeal, which both benefitted from strong weekly export sales data, said a canola broker.

A sharply weaker tone in the Canadian dollar, which was down by more than a cent compared to its US counterpart, also accounted for some of the gains in canola, according to the broker.

While steady farmer selling limited the upside, the broker added that most producers were holding out for better prices, especially if they are spending the money to dry down damp seed.

Fund buying was thought to be behind some of the demand as canola prices moved higher, according to the broker. Routine exporter pricing was also supportive.

Ongoing uncertainty about future canola sales to China tempered the upside in the market, said traders. Problems with shipping canola meal to the US due to salmonella contamination also continued to overhang the market.

At 10:48 CST, about 7,800 canola contracts had changed hands, with inter-month spreading only a small feature.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:48 CST: