ICE Canola Weakens On Harvest Pressure, Soybeans

"Canola is pouring off the land in Saskatchewan," said a Winnipeg-based broker. He noted that while the harvest weather is dry, the overnight temperatures are too cold to aerate the damp canola properly which is forcing producers to move more canola into the elevator system. The elevators, meanwhile, are reducing their cash bids accordingly, said the broker.

The US soybean harvest is also nearing completion, and a report from the USDA pegging production above average trade estimates added to the weaker tone in the oilseed markets, including canola, said the broker.

Strength in the Canadian dollar was also slightly bearish for canola.

Scale down exporter demand limited the losses in canola, as the commodity is still "attractively priced" from an end users perspective, said the broker.

Reports out of China that Canadian canola with blackleg may still find its way into the country, although only at select ports away from China’s own canola producing regions, were also slightly supportive. Although, the broker said the vagueness of the Chinese news will keep exporters very cautious and will unlikely do much to change how much canola China purchases.

At 10:58 CST, about 3,550 canola contracts had changed hands. Activity was thought to be quiet ahead of the Remembrance Day holiday, which will see ICE Canada closed on Wednesday while the US markets remain open.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:58 CST: