ICE Canola Weakens, CBOT Gains Limit Losses

Much of the selling was technically inspired, brokers said. Some of the weakness was also associated with the losses seen in Malaysian palm oil and European rapeseed futures overnight. Losses in CBOT soybean and soyoil futures with the start of the North American day session also sparked some light selling in canola.

The large domestic canola supply situation and the huge world oilseed supply outlook contributed to the bearish sentiment in canola.

Some support in canola, however, came from the pull-back in the value of the Canadian dollar and from steady export demand. The demand was said to be covering both old and new export business.

Exporters confirmed that Pakistan picked up at least two cargoes of Canadian canola earlier this week for an unspecified delivery date. Price details were not available.

A rally in CBOT soybean and soyoil futures shortly after the North American start to the day, helped to pull canola values to the upside.

However, at the highs for the session, the buying ran dry, allowing canola to move back to lower ground, traders said. A pick up in elevator company hedge selling sparked some of the price weakness in canola as did a small recovery in the value of the Canadian dollar.

Sentiment that the recent business to Pakistan has now been fully covered, also sparked some selling.

There were an estimated 5,351 canola contracts traded at 10:48 CST. Of the contracts traded, 1,874 were spread related.

There were 10 western barley futures traded as of 10:48 CST. Light commercial offerings were offset by light commercial demand, leaving values unchanged, brokers said.