ICE Canola Weaker, Retreating From Thursday’s Bounce

After climbing higher on Thursday, traders said the gains may have been overdone, leaving the door open for a correction lower as the canola market is consolidating around current levels.

A stronger tone in the Canadian dollar was also weighing on the canola market, according to a broker.

Statistics Canada released its latest grain/oilseed stocks report, as of December 31, on Friday morning. Canola stocks were pegged at 8.762 million metric tons, which traders generally described as a neutral number. The stocks compare with the year- ago level of 9.151 million tons.

Calls for a firmer start in the CBOT soy complex should provide some underlying support for canola, according to a broker. He said a lack of farmer selling would also keep any losses in check.

About 1,700 canola contracts had traded as of 8:52 CST, with inter-month spreading only a minor feature.

Western barley futures were untraded and unchanged in overnight activity. StatsCan pegged barley stocks, as of December 31, at 7.553 million tons, nearly a million tons below the previous year’s level. Traders said the barley estimate was a little on the low side, which could provide some support for the market.

Prices in Canadian dollars per metric ton at 8:52 CST: