ICE Canola Up On International Vegoil Gains

Canola saw a light trade with an estimated 1,042 contracts traded as of 08:45 CDT.

Canola saw gains in the overnight market, rallying with the advances in Malaysian palm oil and European rapeseed. A more buoyant tone in outside markets this morning contributed to gains, traders said. Canola was expected to hold moderate gains as the North American trading session gets underway and the Chicago Board of Trade soy complex posts advances.

Canola will also draw support from slow farmer selling, although cash dealers indicate that the recent rally has attracted farmers’ attention and they have been receiving "more calls than usual" about doing some selling.
Solid commercial demand from both the export and crush sector is also positive.

Frost talk continues to linger in the market, particularly for Alberta where lows in the Peace River District Friday night are forecast to be 3 degrees Celsius. The Edmonton
area is expected to single digit lows on the weekend, likely as low as 3 degrees C west of Edmonton. That concern is helping to underpin the market.

Technical signals are friendly with technicians noting that there is no significant resistance in the market until the C$460 in the Nov contract.

Capping the gains will be the firm Canadian dollar and favourable growing conditions in Manitoba and Saskatchewan, brokers said.

Commercials have dominated the early trade but analysts expect to see speculative buying today with more commodity fund buying likely in Nov.

Western barley is untraded and unchanged. However the market is expected to be firm on the lack of farmer selling. Demand is likely to be lacklustre, say traders, noting that feed lot numbers are down 10%-20% and that total cow herd numbers are expected to fall to 9 year lows in Canada, according to Canfax a division of the Canadian Cattlemen’s Association.

Prices at 08:46 CDT in Canadian dollars per metric ton: