ICE Canola Up At Close On Weak Loonie

ICE Canola Up At The Close On Weak Loonie

Canola saw a moderate trade with light intermonth spreading noted.

The total canola volume was estimated at 11,064 contracts, down from Friday’s 17,943 contracts.

Canola was higher in the overnight market, prompted by strength in international vegetable oil prices. Canola held onto to small gains as the North American trading session opened, but quickly turned lower as the US soy complex weakened after its higher opening. Canola ended higher following a very choppy session.

Canola was undermined for most of the trading session by the steep slide in CBOT soy complex futures, bearish technical signals, sluggish export demand and the lingering uncertainty about canola exports to China following China’s demand last week that all canola shipments after Nov 15th be blackleg free.

Many exporters are happy that Ag Canada has people going to China to deal with the issue this week. However, most feel that exports will be interrupted for several weeks until the issue is dealt with. Some feel it could even have longer term ramifications on canola exports to China.

Underpinning the market and turning the market higher at the close
was the very weak Canadian dollar and the slow pace to farmer selling. The continued delays in the harvest, with an estimated 2 mln metric tons unharvested, also supported the market, analysts said.

Crushers were strong buyers with only light routine export interest noted. The selling came from commercials with elevator company offerings evident.
Commodity funds were also noted adding to their Jan short positions with their sales estimated at 200-300 contracts.

Western barley ended mixed with the Nov contract higher as short covering ahead of the contract becoming deliverable next week gave support.
This would be the first time delivery would be made against the newly revised contract, brokers said.

The deferred contracts were pressured down by the steep slide down in CBOT corn futures.

The total barley volume was estimated at 185 contracts, up from 17 contracts on Friday.

Prices are in Canadian dollars per metric ton: 

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