ICE Canola Up On CBOT Soybean Gains, Weak C$

Support overnight in canola came from the advances seen in the e-CBOT soybean complex, Malaysian palm oil and Matif rapeseed futures.

The upward price action in canola also reflected steady domestic processor demand, with crush margins remaining very profitable, brokers said. Commercial pricing of routine export business to Japan and Mexico also contributed to the price strength in canola.

Rain related seeding delays in Manitoba and parts of Saskatchewan were seen as supportive.

Tight old crop supplies of soybeans and Argentina’s poorer than anticipated soybean harvest also provided some spillover support for canola, traders said.

The upside in canola was limited by the downturn in CBOT soyoil futures as well as the weakness being displayed by the North American equity sector, brokers said.

Light bouts of profit-taking by a variety of market participants also limited some of the upward price momentum, brokers said.

There were an estimated 5,672 canola contracts traded at 11:04 CDT. Of the contracts traded, 2,348 were spread related.

At 11:04 CDT, no western barley future had changed hands.

Prices in Canadian dollars per metric ton at 11:04 am CDT: