ICE Canola Weakens Following Outside Markets

Malaysian palm oil, European rapeseed, and e-CBOT soybeans were all lower in overnight activity, lending a bearish tone to the canola market, said an analyst. Soybeans are expected to remain under pressure at the start of the North American session, which should keep the bias to the downside in canola as well.

Large canola supplies in Canada, a lack of fresh export business, and looming South American soybean production were also weighing on canola values, according to traders.

A weaker tone in the Canadian dollar Friday morning could limit the downside in canola. However, a trader pointed out that the currency is still up sharply compared to its US counterpart on the week, which may limit any support in the canola market.

Activity could slow down and turn choppy later in the day, as participants start to move to the sidelines ahead of the long- weekend. ICE Futures Canada will be closed Monday for Louis Riel Day in Manitoba. US markets will also be closed for Presidents Day.

About 1,000 canola contracts had traded as of 8:44 CST, with spreading only a minor feature.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:44 CST: