ICE Canola Up On CBOT Gains, C$ Tempers Upside

Gains overnight in the e-CBOT soybean complex, Malaysian palm oil and Chinese rapeseed futures further underpinned canola, brokers said. Domestic crushers were also light buyers of canola.

"We’re starting to see the gains in canola erode given that soybeans and soyoil are also giving back their advances," a trader commented.

The advances in canola were also being tempered by the appreciation of the Canadian dollar against other foreign currencies, the trader said.

The strength in
canola was also being capped by weather outlooks calling for favourable weather conditions across western Canada, brokers said.

With the improved weather outlook, producers were expected to concentrate in getting canola put into the ground.

"While that means producers will not be concentrating on marketing canola, the fact that they will be planting soybeans is bearish," a broker said. "Producers may also be looking at planting more canola than first anticipated."

The planting of the canola crops now also is being viewed as improving yield potential, the broker said.

Elevator company hedge offerings were on the light side, but enough to help trim the gains.

The absence of fresh export demand helped to weigh on canola with a drop off in routine demand also an undermining price influence. Japan, one of Canada’s regular canola customers is off this week for the Golden Week holidays, traders said.

There were an estimated 7,335 canola contracts traded at 10:58 CDT. Of the contracts traded, 3,178 were spread related.

At 10:58 CDT, 1 western barley future had changed hands.

Prices in Canadian dollars per metric ton at 10:59 am CDT: