ICE Canola Up On Slow Selling, Weak Loonie

The canola volume was moderate with intermonth spreading enhancing activity. Evening up was noted ahead of the US Thanksgiving Day holiday on Thursday.

The total canola volume was estimated at 10,525 contracts, up from Monday’s 8,678 contracts, including an estimated 5,452 contracts involved in the spread trade.

Canola was mainly higher in the overnight market on the weak Canadian dollar and ideas that canola was undervalued. Canola turned lower as the North American trading session got underway and the Chicago Board of Trade soy complex opened lower. During the session canola did rally back ending modestly higher.

Canola was supported by the weak dollar and the sluggish pace to farmer selling as farm cash bids have started to back down from the C$9.00/bu level. Talk of export demand also gave support with the buying thought to be routine.
Ideas that canola was still a good value gave some support.
A late rally in CBOT soybeans
spilled in to lift the canola market
at the close.

Capping the advance was bearish technical signals as the inability to penetrate resistance on Monday was viewed negatively. Also weighing on the market was the continued uncertainty about export sales to China.

Exporters and crushers were "fairly routine" buyers,
said brokers. The selling was mainly commercial.

Western barley ended narrowly mixed with the tone firm in light trade. The lack of interest allowed values to drift down.

The total barley volumes was estimated at 20 contracts, up from no volume on Monday.

Prices are in Canadian dollars per metric ton: