ICE Canola Up On Weak Loonie

Canola saw a light to moderate trade with only small amounts of intermonth spreading noted.

The total canola volume was estimated at 12,831 contracts, down from Thursday’s 16,575 contracts, including an estimated 3,162 contracts involved in the spread trade.

Canola was higher in the overnight market on a firm tone in Malaysian palm oil prices and the weak Canadian dollar. Canola held onto its small gains as the North American trading session opened and the Chicago Board of Trade soy complex posted losses. Canola saw a choppy session ending mainly a bit higher.

Canola drew some support from the firmness in CBOT soybean futures with much of the strength coming from the weak Canadian dollar and friendlier technical signals, brokers said. Export interest also underpinned the market as both Dubai and Pakistan expressed interest in canola, export sources said. They noted that no deals had been concluded.

Weighing on the market was the weakness in CBOT soy products, the continued uncertainty about making export sales to China and steady farmer selling, traders said.

Crushers were good buyers with routine exporter pricing noted.
Speculators were light buyers with commodity fund buying noted. The selling came from commercials, elevator companies and farmers.

Western barley ended higher in light trade.
Commercials were the main participants as the lack of country movement gave support.
Light steady end user pricing accounted for the gains.

The total barley volume was estimated at 201 contracts, up from no activity on Thursday.

Prices are in Canadian dollars per metric ton: