ICE Canola Up With Nearby CBOT Soybean Contracts

Despite small losses in new crop CBOT soybean contracts, gains in nearby CBOT soybeans were helping to encourage advances in canola, brokers said.

Traders also thought that some of the strength in canola was tied to the catching up that canola had to do to CBOT soybeans from the beginning of the week.

Further helping to lift canola contracts was talk of fresh export business. One market source said there had been some routine business conducted with Mexico while another source thought that Pakistan may also have picked up some Canadian canola this week.

Lower soyoil futures had been weighing on the market but prices were beginning to improve and had already turned mixed.

Modest declines in equity markets, losses in crude oil futures and the firm tone of the Canadian dollar on Friday were bearish price influences.

Activity in canola was moderate but trade volumes were still down from recent sessions. As of 11:15 CDT, 6,895 canola contracts had been traded, of which 5,392 were spread-related.

Western barley futures were lower in very thin trade. Only 111 contracts had changed hands as of 11:15 CDT and of that amount 80 were tied to inter-month spreading.

Prices in Canadian dollars per metric ton at 11:15 CDT: