ICE Canola Turns Higher On CBOT Soybean Strength

Canola futures had moved lower overnight reacting to sentiment that the market was overvalued and in need of a downward correction, brokers said. The improved moisture situation in western Canada was also viewed as an undermining price influence.

Declining profit margins for western Canadian crushers and steady farmer selling into the cash pipeline helped to spark some of the weakness experienced by canola overnight.

The advances posted by Malaysian palm oil futures overnight helped to slow some of the selling interest in canola.

Support in canola also came from the buying back of short positions, especially as the advances in the CBOT soybean complex began to expand, traders said.

Talk of fresh export demand contributed to some of the strength seen in canola. Export sources said there were indications that some pricing of some old and new sales to China were underway. Confirmation of any fresh business, however, was not available.

Continued uncertainty about the crop in western Canada and the high variability of crop conditions was also helping to provide a bit of a price floor for canola, traders said.

There were an estimated 6,493 canola contracts traded at 10:50 CDT.

There were 37 western barley futures traded as of 10:50 CDT. Light commercial liquidation put the November future on the defensive, brokers said.

Prices in Canadian dollars per metric ton at 10:50am CDT: