ICE Canola Weaker As Harvest Progresses

While Environment Canada forecasts show the potential for a mild frost in parts of central Alberta next week, traders thought frost was not so much of a concern for canola anymore. A broker noted that the harvest was moving steadily forward with "big yield numbers coming in from across the Prairies."

A frost could still cause problems for the US soybean crop. The broker said US forecasts were no longer hinting at frost, causing CBOT soybeans to turn lower on Thursday and putting further pressure on canola.

With the western Canadian harvest progressing, farmers will be moving more canola as it will be the easiest crop to generate some fall cash with, said the broker.

Strength in the Canadian dollar, which was at its highest level relative to the US currency in over a year, also weighed on canola, according to the broker.

Steady exporter and domestic crusher demand limited the losses in canola, as end users were taking advantage of the lower prices, said the broker.

At 10:59 CDT, about 2,700 canola contracts had changed hands.

Western barley futures were steady to lower at midsession, taking some direction from CBOT corn. However, only one barley contract had actually traded by midday.

Prices in Canadian dollars per metric ton at 10:59 CDT: