ICE Canola Weaker, Pressured By CBOT Soybeans/Corn

With no real fresh news to move the canola market, the futures declined in sympathy with CBOT soybeans, which were reacting to the limit-down losses in corn, said a canola trader. A downturn in crude oil also weighed on canola, said traders.

Commercial positioning was thought to be on both sides of the canola market, although traders didn’t think there was any fresh demand from exporters or domestic crushers. Commodity fund long liquidation was also a feature, according to traders.

Ongoing weather concerns in western Canada remained supportive for canola prices, limiting the downside. Dry conditions persist in Alberta and parts of Saskatchewan, while in Manitoba recent rainfall has led to some concerns about excessive moisture.

Canola was also finding some support from the weaker tone in the Canadian dollar on Tuesday, according to traders.

At 11:10 CDT, about 6,800 canola contracts had changed hands, with inter-month spreading only a small feature. Activity was expected to slow down with some participants moving to the sidelines ahead of the Canada Day holiday on Wednesday, and the closure of the US Markets for Independence Day on Friday.

Western barley futures were steady to lower with 40 contracts traded by 11:10 CDT. Losses in CBOT corn provided some of the selling pressure in barley, although barley was lagging corn to the downside, according to traders.

Prices in Canadian dollars per metric ton at 11:10 CDT: