ICE Canola Up On Firm Vegoils

Canola saw a light trade with intermonth spreading accounting for much of the volume. Traders indicated that many participants remained sidelined taking a longer Easter break.

The total canola volume was estimated at 7,921 contracts, down from Thursday’s 14,488 contracts.

Canola was mixed in the overnight trading session reflecting a mixed tone in international vegetable oil markets. Canola saw choppy weak price movement as the North American trading session got underway and Chicago Board of Trade soy complex values were lower. However, as the US market came back to gains canola followed the US soy complex higher ending the session with modest gains.

Canola drew the bulk of its support from the gains in vegetable oils as CBOT soyoil futures were higher and Malaysian palm oil futures touched 7 month highs overnight.
Friendly technical signals also gave some support.

The canola gains were smaller than the US market, particularly in the old crop, where sluggish demand in the export market and a slowing crush pace restrained the advance.
The Canadian dollar was higher and that was also an undermining feature of the trade. Analysts also pointed to rising canola stocks being held by commercials, as confirmed last weekly by the weekly grain statistics from the Canadian Grain Commission, as being as bearish market feature.

Routine exporter buying and scale down crusher demand met commercial selling with farmer selling described as steady.
Western barley was little changed in very light trade with intermonth spreading accounting for the bulk of the activity. Ideas that feed lot needs are covered through late May has limited the interest in barley, said cash dealers.

The total barley volume was estimated at 50 contracts, down from Thursday’s 334 contracts.

Prices are in Canadian dollars per metric ton: