ICE Canola Up On Exports, US Soy

The canola volume was described as moderate with intermonth spreading accounting for much of the trade as commodity funds and commercials dominated the spread activity. Minor positioning was noted ahead of Friday’s Statistics Canada planting report.

The total canola volume was estimated at 15,634 contracts, up from 10,165 contracts on Monday, including an estimated 10,098 contracts involved in the spread trade.

Canola was higher in the overnight trade, reflecting the gains in the overnight soybean market. Canola extended its gains as the North American trading session opened and CBOT soy complex futures rallied. Canola ended the day higher.

Canola drew further support from news that Pakistan had picked up 2 cargoes of canola for June shipment this week. Friendly technical signals and continued strong crush margins contributed to the gains, analysts said. Farmer selling was slow and that gave some support as well.

Weighing on the market was the firm Canadian dollar and ideas that significant amounts of farmer selling reside above the current market near the C$450.00 per metric level in the July contract.

Crushers and exporters were both strong buyers with commercials the featured sellers.

Western barley ended higher in light commercial trade with intermonth spreading accounting for the bulk of the activity. Ideas that Monday’s losses were overdone and slow farmer selling gave support.
However, sluggish demand limited the strength.

Western barley volumes were estimated at 477 contracts, up from 216 contracts on Monday, including an estimated 376 contracts involved in the spread trade.

Prices are in Canadian dollars per metric ton:

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