ICE Canola Up On Friendly Charts, Soyoil Gains

Canola saw a moderate trade with intermonth spreading accounting for much of the activity. Volumes were restrained ahead of the US Thanksgiving Day holiday on Thursday.

The total canola volume was estimated at 13,343 contracts, up from Tuesday’s 10,518 contracts, including an estimated 8,432 contracts involved in the spread trade.

Canola was higher in the overnight market, prompted by firmness in international vegetable oil prices. Canola held onto gains as the North American trading session opened and the Chicago Board of Trade soybean market firmed. However after that, the US soy market turned choppy contributing to choppiness in canola. By the close though canola had rallied to moderate gains.

Canola was supported by the firm tone in CBOT soyoil futures and friendly technical signals. The improved crush margins, slow farmer selling and some export pricing rallied prices. Speculative buying was triggered in the Jan contract as it penetrated significant chart resistance points at C$409.40, traders said.

Weighing on the market was the firm Canadian dollar, news that CN locomotive engineers have issued a strike notice to the railroad and the continued uncertainty surrounding export sales to China.

Crushers were strong buyers with exporter pricing also noted. Speculative buying appeared with commodity funds steady buyers throughout the session, traders said. The selling came from commercials with grain elevator companies steady sellers.

Western barley ended lower in light trade. The lack of end user demand allowed the market to fall in small volumes as the barley market ignored the strong gains in CBOT corn futures, brokers said.

The total barley volume was estimated at 26 contracts, up from 20 contracts on Tuesday.

Prices are in Canadian dollars per metric ton: