ICE Canola Weaker Following Soy

Weakness in the Chicago soy complex, brought on by a firm US dollar and concerns about potential reductions to Chinese demand, spilled over to weigh on canola, according to a Winnipeg-based broker. Speculators were some of the noted sellers. Overnight losses in Malaysian palm oil and the weaker tone in the equity markets were also accounting for some of the declines in canola.

The Canadian dollar was sharply weaker on Friday, which would normally be supportive for canola. However, the broker said the currency was doing little to temper the declines in canola on Friday, with canola actually losing ground to soybeans when the exchange rates were factored in.

Scale down exporter and domestic crusher pricing helped limit the losses in canola, according to market participants.

At 10:41 CST, about 4,600 canola contracts had changed hands, with spreading a small feature as participants adjust their positions before the end of the month.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:41 CST: