ICE Canola Weakens Following Outside Markets

General global economic uncertainty was said to be behind some of the weakness in the commodity markets, including canola, on Tuesday. In addition to the calls for a softer start in soybeans, Malaysian palm oil and European rapeseed futures were also weaker overnight.

Harvest pressure overhanging the market also weighed on canola values, although traders said there were still enough crop concerns to keep prices from moving too much lower.

Wet weather across many areas of western Canada continues to delay harvest operations, raising concerns that the crop could face frost risks down the road, according to traders.

Solid export demand, with China rumoured to still be in the market pricing some business, also remained supportive.

The Canadian dollar was weaker Tuesday morning, which helped further limit the declines in canola.

About 750 canola contracts had traded as of 8:42 CDT.

Western barley futures were untraded and unchanged Tuesday morning.

Prices in Canadian dollars per metric ton at 8:42 CDT: