ICE Canola Weakens On Improved Crop Conditions

Contributing to the downward price slide were the declines in CBOT soybean futures, brokers said.

Losses in Malaysian palm oil futures overnight helped to prompt some of the early weakness in canola.

Improving crop conditions in western Canada helped to spark some early selling in canola, with weather outlooks calling for more precipitation this week across the key growing areas also likely to be beneficial, brokers said. Warmer temperatures were expected to follow the precipitation.

The absence of fresh export demand helped to undermine canola futures with some chart related liquidation from a variety of market participants also keeping canola on the defensive.

The good growing conditions for the US soybean crop was also viewed as an undermining price influence for canola, traders said.

The declines in canola were limited in part by concerns over the cool temperatures across much of western Canada during the weekend.

There were reports of frost late last week in a number of canola growing regions in Alberta and with readings again dropping to near the freezing level during the weekend, there were ideas that fields in low lying areas may have suffered some additional damage, brokers said.

"If we’re almost getting frost in the middle of July, how will we get through August?" a broker asked noting that "we’ll need to be frost free well into September to get this crop in decent shape."

The losses in canola were also being tempered by the firm price tone seen in CBOT soyoil values and the pricing of old export business.

Slow farmer deliveries helped to underpin canola futures as well, traders said.

There were an estimated 1,942 canola contracts traded at 10:45 CDT.

There were 4 western barley futures traded as of 10:45 CDT. Light commercial liquidation and the absence of willing buyers allowed values to move lower, brokers said.

Prices in Canadian dollars per metric ton at 10:45 am CDT: