ICE Canola Turns Lower As Buying Backs Away

An analyst said declining crush margins were causing the domestic crushers to move to the sidelines. He added that export interest was also lacking at the current price levels, and said that end users were likely waiting for the November contract to move down to the C$430 per metric ton level before doing more pricing.

With all of the production issues in western Canada already priced into the market, and the weather conditions now looking reasonably favourable for development, traders said there was little need to add to the risk premiums in the canola market.

However, the technical signals are still pointing higher, according to market participants.

Gains in the CBOT soy complex were also helping underpin the canola market, limiting the declines.

Farmer selling was said to be slowing down in the canola market, after producers made large sales earlier in the week. The decline in farmer selling was also providing some underlying support.

At 10:41 CDT, about 4,700 canola contracts had changed hands, with intermonth spreading only a small feature.

Western barley futures were untraded and unchanged.

Prices in Canadian dollars per metric ton at 10:41 CDT: