ICE Canola Underpinned Overnight By Firm Outside Markets

Encouraging a firm tone in the market were advances in e-CBOT soybeans, Chinese soybeans, European rapeseed and Malaysian palm oil values.

Gains were also a reflection of stock markets advances and stronger crude oil futures.

Soybean values are called 12 to 15 US cents per bushel higher for the start of North American trade in Chicago, which also accounted for some of the light overnight buying interest.

For the remainder of the day market analysts say there is a bullish bias for canola, with friendly chart signals, speculative buying interest and good commercial demand expected to help fuel advances in canola.

Tight supplies of old crop US soybeans, better-than-expected weekly USDA soybean export figures and the small size of the Argentine soybean harvest will add to canola’s underlying support as well.

The slow pace of farmer selling as producers switch their attention to spring seeding, will also add to canola’s bullish tone, traders said.

However, the surging Canadian dollar will once again be a limiting factor for canola prices as it discourages demand, brokers said. In early trade, the Canadian dollar was trading at just under 84 US cents and traders thought further upside was possible.

Overnight interest in canola was light, with only 519 contracts having traded as of 9:05 CDT.

There was no activity overnight in the western barley market, leaving contracts unchanged and untraded as of 9:05 CDT

Prices in Canadian dollars per metric ton at 9:05 CDT: