ICE Canola Up On Monday’s US Market Rally

Canola saw a moderate trade with an estimated 1,300 contracts traded as of 08:33 CDT.

Canola drew the bulk of its support in the overnight market from Monday’s big advances in CBOT soy complex futures.
Commercial demand contributed to the advance. Canola is expected to hold its gains as the North American trading session gets underway.
Limiting the gains will be an expected retreat in CBOT soy complex futures.

Canola is also expected to be pressured by the firm Canadian dollar which is up moderately from Friday’s close.
However, the strength in Monday’s US market will carry canola higher Tuesday, say traders.

Some support continues to be traced to the below normal temperatures in western Canada as lows in Regina, Saskatchewan
overnight fell to just 4 degrees Celsius.
The market continues to be concerned about an early frost and some forecasters
are suggesting a frost on the prairies by mid-month.
Environment Canada is forecasting that temperatures will run about 5 degrees below normal this week.

Helping to support the market is the lack of farmer selling as producers continue to assess crop conditions, say cash dealers.

Contributing support to the market and boosting volumes was speculative buying triggered by the rise in prices with some short covering by commodity funds evident in the overnight trade.
More short covering is expected during the Tuesday trading session, say traders.

Western barley rallied in light trade. The gains in CBOT corn on Monday, when the Winnipeg market was closed, and the lack of farmer selling lifted values. However the firm Canadian dollar is a negative factor as it makes US feed imports cheaper, traders noted.

The estimated barley volume at 08:28 CDT was 10 contracts.

Prices at 08:29 CDT in Canadian dollars per metric ton: