ICE Canola Up On Charts, Crush Margins

Canola activity was moderate with only small amounts of intermonth spreading.

The total canola volume was estimated at 8,273 contracts, down from 13,784 contracts on Monday.

Canola was lower in the overnight market, prompted by weakness in international vegetable oil prices and a firm Canadian dollar. Canola maintained losses as the North American trading session got underway and the US soy complex initially rallied and then turned down. Canola closed a bit higher, despite weakness in the US soy market.

Canola was supported by profitable crush margins and friendly technical signals which prompted speculative buying. "Technically the market (July canola) is trying to make a convincing close above C$450, which would be a very friendly signal", said one trader. The weakness in the Canadian dollar and a slower pace to farmer selling contributed to the gains. Farmer selling slowed as producers focus on planting season with weather favorable for planting.

Weighing on the canola market was the weakness in Chicago Board of Trade soy complex futures and a slower pace to export demand.

Crushers were the best buyers with only routine export interest noted. Speculative buying was evident with commodity fund buying estimated at 500 to 1,000 July contracts. The selling was mainly commercial with light elevator company selling noted.
Exporters were the best sellers.

Western barley ended little changed to a bit lower in very thin commercial activity. There was little interest in the market and that accounted for a choppy tone as the market reacted to very small buy or sell orders.

The total barley volume was estimated at 5 contracts, up from only 4 contracts on Monday.

Prices are in Canadian dollars per metric ton: