ICE Canola Weakens In Consolidative Trade

Large US soybean supplies, together with expectations for a large South American soybean crop, should keep the oilseed markets under pressure, said a trader. The CBOT soy complex was being called lower to start, which should lead to some spillover- selling in canola.

The Canadian dollar was holding firm early in the day, providing little direction for the canola market.

The recent downturn in canola prices has caused farmers to back away from the market, and the lack of hedge pressure helped limit the declines, according to an analyst. He noted that cash bids have dropped below C$8 per bushel in many locations across western Canada, as basis levels widen and elevator companies look to deter producer deliveries.

Ideas that canola may be oversold and due for a corrective bounce higher also provided some support, according to traders.

Only 93 canola contracts had actually traded as of 8:45 CST. The thin volumes could lead to choppy activity and large price swings as the trading day progresses.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:45 CST: