ICE Canola Up Following Outside Markets

Both the Canadian and US markets were closed Monday for holidays.

An analyst said improving global economic sentiments after the long-weekend were taking equities and other commodities, including crude oil, higher. He said the gains in the outside markets were lending some spillover support to canola.

Calls for a firmer start to the CBOT soy complex were also helping underpin canola values.

Steady end-user demand and reluctant farmer selling provided further support.

In addition, there were reports over the weekend that China has approved five additional crushing plants to accept blackleg- free Canadian canola. Traders were uncertain what that news meant, as there are still only two Chinese plants that will accept canola infected with the common blackleg fungus, and Canada has not made any shipments to China since new restrictions went into place in November 2009.

A stronger tone in the Canadian dollar could limit the upside in canola, according to traders. Large global oilseed supplies, were also seen as bearish for prices.

About 450 canola contracts had traded as of 8:45 CST, with spreading only a minor feature.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:45 CST: