ICE Canola Weakens On Demand Drop-Off

Some of the downward price action seen in canola overnight came from declines e-CBOT soybean values, as well as the weakness seen in Malaysian palm oil and Matif rapeseed futures.

Overnight weakness in global equities and losses in crude oil futures added to the early bearishness in canola.

Losses in canola were also being attributed to a pick up in elevator company hedge selling, given that producers in Alberta were close to being done planting canola, brokers said.

A decline in demand from domestic processors helped to weigh on the nearby canola contracts as did the absence of fresh export business being put on the books, traders said. News that China will harvest a record sized rapeseed crop also helped to spark some selling in canola.

Weakness in CBOT soyoil futures were also viewed as an undermining price influence for nearby canola contracts.

An improved weather picture for the more easterly regions of the Canadian prairies also inspired some minor selling interest.

Some underlying support in canola came from routine exporter pricing of previously made sales. Strength in CBOT soybean and soymeal futures were also seen as supportive.

A small pull-back in the value of the Canadian dollar was also seen as a minor underlying price support.

There were an estimated 4,199 canola contracts traded at 10:47 CDT. Of the contracts traded, 1,754 were spread related.

At 10:47 CDT, 77 western barley future had changed hands, with 2 of the contracts traded consisting of spreads. Light commercial demand in the absence of willing buyers helped to bolster values, brokers said.

Prices in Canadian dollars per metric ton at 10:47 am CDT: