ICE Canola Weakens On Follow-Through Selling

The lingering after-effects of the USDA’s bearish supply/demand reports weighed on CBOT soybeans and corn in overnight electronic activity, and were expected to keep the bias to the downside in the agricultural markets as the North American session progresses, said an analyst.

Overnight losses in Malaysian palm oil and European rapeseed futures were also seen putting some pressure on canola values.

Expectations for a large South American soybean crop also continue to overhang the market.

The Canadian dollar was stronger early in the day, which was another bearish factor for canola.

However, 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.

Ideas that canola may be due for a corrective bounce higher also provided some support, with some buyers likely doing some ‘bargain hunting’ at current values.

About 720 canola contracts had traded as of 8:40 CST.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:40 CST: