ICE Canola Up Following Outside Markets

ICE Canola Up Following Outside Markets

The G-20 meeting in South Korea failed to ease concerns that the US would devalue its currency, according to an analyst who said the resulting downturn in the US dollar and sharp gains in commodities was spilling over to support canola. The CBOT soy complex was being called sharply higher to start the North American session, while Malaysian palm oil and European rapeseed futures were also stronger in overnight trade.

Domestic crusher pricing and a slowdown in farmer selling, as harvest operations wrap up across western Canada, added to the firmer tone in canola. Some technical-based buying was also noted, with prices hitting fresh contract highs.

The upside in canola was limited by the firmer Canadian dollar, which was rising sharply in relation to its US counterpart. However, traders said the outside market forces were largely overriding the effects of the firmer currency.

The potential for profit-taking at the highs also tempered the upside in canola, according to market participants.

About 1,500 canola contracts had traded as of 8:35 CDT.

Western barley futures were untraded and unchanged Monday morning.

Prices in Canadian dollars per metric ton at 8:35 CDT: