ICE Canola Up On Exports, Charts

Canola saw an active trade with intermonth spreading enhancing the level of activity.

The total canola volume was estimated at 20,958 contracts, up from Tuesday’s 8,273 contracts.

Canola was higher in the overnight trade, prompted by gains in international vegetable oil prices and higher crude oil values. Canola maintained its gains as the North American trading session got underway and the Chicago Board of Trade soy complex rallied.
Canola ended the day with strong gains.

Canola was lifted by export activity with traders indicating that Pakistan had picked up one cargo and was likely looking for another. Brokers also felt that China was preparing to enter the market for more canola as well. Contributing to the gains were bullish technical signals as the July move above the C$450 per metric ton level prompted strong speculative buying and some short covering.

Also helping to boost the market was the very slow pace to farmer selling as producers focus on planting. Cash dealers also noted that, with the rise to C$10.00/bu at the farm gate, all farmers who wanted to sell at that level have.

Limiting the advance was the firm tone in the Canadian dollar.

Crushers were the best buyers with exporter buying steady.
Commodity funds were noted buyers early and late in the session taking between 1,000 and 1,500 July contracts. Commercials were the main sellers.

Western barley ended higher in very light commercial trade. The lack of farmer selling gave the main support in the very thin activity.

The total barley volume was estimated at 15 contracts, up from 5 contracts on Tuesday.

Prices are in Canadian dollars per metric ton: