ICE Canola Weakens In Quiet Trade

"We’re just dead, waiting for some direction," said a canola trader on the lackluster activity in the market.

Losses in CBOT soybeans and soyoil were accounting for some of the spillover weakness in canola, according to the trader.

Farmers were noted sellers, as they continued to make good harvest progress over the weekend, said the trader. Commodity funds were also on the sell side.

Export demand helped limit the downside, with some pricing of routine Japanese business a feature, according to the trader. However, he added that domestic crushers were largely absent from the market, due in part to their difficulties selling canola meal to the US because of issues with salmonella.

Cool temperatures forecast across all of western Canada this week provided some underlying support for canola. Although traders noted that the canola harvest is well on its way to completion and most of the crops still left to go are past the point where frost would be a concern.

Statistics Canada releases its latest production estimates on Friday, October 2. Traders are expecting upward revisions of a million tons or more to StatsCan’s last canola estimate of 9.5 million tons, and positioning ahead of the report should be a feature in the market during the week.

At 10:57 CDT, about 3,600 canola contracts had changed hands.

Western barley futures were steady to higher in light trade, finding some support from the gains seen in CBOT corn.

About 37 barley contracts had traded by midsession.

Prices in Canadian dollars per metric ton at 10:57 CDT: