ICE Canola Weakens In Thin Trade

A Winnipeg broker said crop conditions were generally improving across western Canada, with showers forecast for most areas early this week, followed by warmer temperatures. Calls for a lower start in CBOT soybeans, along with a slightly firmer tone for the Canadian dollar, should also weigh on canola.

However, overnight temperatures were on the cool side in many areas of western Canada over the weekend, leading to some concern in the market. "If we’re almost getting frost in the middle of July, how will we get through August?" he asked noting that "we’ll need to be frost free well into September to get this crop in decent shape."

With production and demand still very much in the air for canola, the broker expected a "wait and see" attitude to dominate the market for the time being. He thought there would likely be some end user demand below the market to keep any declines in check. Growers will also be on the sidelines until they are more confident in their crops, said the broker.

About 380 canola contracts had traded as of 8:59 CDT, the bulk of that in the November futures month.

Western barley futures were untraded in overnight activity.

Prices in Canadian dollars per metric ton at 8:59 CDT: