ICE Canola Up On Strong Demand, Planting Delays

The increased demand and planting worries are believed to have stimulated fresh speculative demand, brokers said.

Much of the demand component continues to come from domestic processors
as favourable crush margins has maintained the need to obtain supplies from producers, brokers said. Demand for canola from elevator companies in order to sustain an aggressive export pace from Canada’s West Coast has also helped to generate support for the commodity, traders said.

The gains in canola were also coming from the absence of significant farmer deliveries into the cash market.

An upswing in the North American equity markets helped to propel canola futures upward as did an upturn in CBOT soybean values shortly after their North American start.

Strength in canola was also stemming from the tight old crop soybean supply situation and the lower than expected soybean harvest from Argentina. Sentiment that weather conditions in the US would improve enough so that producers there will be able to seed corn and less soybeans, also fueled some light support for canola.

Chart based buying helped to augment the upward price action in canola as did the lack of willing sellers, traders said.

The upside in canola was limited in part by the weakness in CBOT soyoil values and the upturn in the value of the Canadian dollar.

Losses overnight in e-CBOT soybeans, Malaysian palm oil and Matif rapeseed futures had put some downward pressure on canola values early.

There were an estimated 6,615 canola contracts traded at 10:44 CDT.

At 10:44 CDT, 2 western barley future had changed hands.

Prices in Canadian dollars per metric ton at 10:44 am CDT: