ICE Canola Weaker, Spreading The Feature

Grain company hedge selling accounted for some of the weakness in the market, according to a canola broker. He said strength in the Canadian dollar and the mixed tone in the CBOT soy complex also weighed on canola values.

Large Canadian canola supplies overhanging the market were also cited as a bearish price influence.

However, routine Japanese pricing helped underpin canola values, according to the broker. Commodity funds were also thought to be on the buy side on a scale-down basis.

At 10:52 CST, about 10,800 canola contracts had changed hands, with the January/March spread accounting for the majority of the activity. The broker said domestic crushers and grain companies were the main participants in the spread trade. He added that the index funds are already finished rolling their positions forward, while the commodity funds will be exiting their January positions later this month.

Western barley futures were steady to higher at midday, with 20 contracts traded. Cold weather conditions across western Canada provided some support, as feed usage should be picking up.

Prices in Canadian dollars per metric ton at 10:52 CST: