ICE Canola Weaker, As Bias Points Down

The failure of the canola market to hold onto gains Tuesday, despite the firmer close in CBOT soybeans, was seen as a sign of the bearish tone in canola. With soybeans being called lower to start on Wednesday, traders expected the path of least resistance would also remain lower in canola.

Malaysian palm oil futures were also down in overnight activity.

Expectations for a large South American soybean crop remain a bearish influence in the oilseed markets, although drier conditions in Argentina could potentially provide some support.

Oversold price sentiment was also expected to limit the downside in canola, according to an analyst who said the market could turn choppy.

The Canadian dollar was slightly weaker Wednesday morning, providing some further support for canola.

Steady export demand also remains a supportive price influence, according to traders.

About 890 canola contracts had traded as of 8:51 CST.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:51 CST: