ICE Canola Up On Exports, Weak Loonie

Canola activity was moderate with intermonth spreading continuing to enhance the level of trade.

The total canola volume was estimated at 11,153 contracts, down from Wednesday’s 13,639 contracts.

Canola was lower in the overnight market, reflecting the advancing harvest and the weak tone in international vegetable oil prices. Canola turned mixed to higher as the North American trading session got underway, ignoring weakness in the US soy complex. Canola ended the session higher.

Canola was supported by talk of fresh export bookings and the very weak Canadian dollar. Traders indicated that China is thought to have purchased another cargo of canola today. "Talk was that Chinese buying was sitting at C$377 (per metric ton in the Nov contact).
We got down to C$376.50 and the rally began…so it looks like China is back in the market," said a trader.

Contributing to the gains was technically based speculative short covering and talk of frost in the forecast early next week in Alberta and northern Saskatchewan. Traders acknowledge that the crop is generally passed the point that frost will damage the canola crop, but they felt it was a "psychologically" supportive influence.

Weighing on the canola market was the advancing harvest, steady country movement and the weak tone in Chicago Board of Trade soyoil futures, brokers said.

Exporters and crushers were both buyers today with commission house short covering triggered by the bounce higher in the market. The selling was mainly commercial with elevator company hedging steady. Speculative selling was light.

Western barley ended a bit lower in light trade. The lack of country selling and the firm tone in CBOT corn helped to lift prices for most of the session, brokers said. However, end user demand was felt to be "sluggish" and when some light selling appeared at the close it sent the market to small losses.

The total barley volume was estimated at 62 contracts, down from 52 contracts on Wednesday.

Prices are in Canadian dollars per metric ton: