ICE Canola Weaker on C$, Losses In Soyoil

Losses in CBOT soyoil accounted for some of the spillover selling pressure in canola, said a canola broker. He said the sharp strength in the Canadian dollar was also bearish for canola.

However, the broker thought canola was holding up reasonably well compared to the outside markets, and would be posting much larger losses if it was following the soy market directly.

The broker thought canola was attractively priced from an export standpoint, which was bringing some bidding into the market. Domestic crushers were also showing an increase in demand.

Speculative short-covering provided some further support for canola, according to the broker. A slow-down in farmer deliveries, with cold weather conditions across most of the Prairies, also provided some support.

At 11:05 CST, about 7,700 canola contracts had changed hands, with the January/March spread accounting for the bulk of the contracts traded as participants continue to roll out of the nearby month.

Western barley futures were narrowly mixed at midday, with 31 contracts traded.

Prices in Canadian dollars per metric ton at 11:05 CST: