ICE Canola Weighed Down As C$ Rises

Overnight gains in e-CBOT soybeans, Chinese rapeseed, Malaysian palm oil and European rapeseed values all underpinned canola prices.

Additional support had been tied to the firm overnight tone in equities and higher crude oil futures. Crude oil prices have since retreated to weaker levels.

Canola contracts were undermined, however, as the strength of the Canadian dollar discouraged buying interest. The currency was trading about 88 US cents.

Chicago soybeans are called higher at the start of North American trade but uncertainty about the market’s ability to hold onto opening gains limited the upside in canola prices as well. US markets will be closed Monday for the Memorial Day holiday and profit-taking ahead of the long weekend could weigh on soybeans and eventually canola, brokers said.

Fears that Chinese demand for US soybeans could dry up after a government-linked group in China said domestic soybeans are cheaper than imports for the first time this year could also weigh on soybeans and in turn canola, according to market watchers.

Tight US soybean stocks, relatively slow farmer selling and light commercial demand will provide a floor for canola prices.

As of 9:04 CDT, 892 canola contracts had changed hands.

There was no overnight or early activity in the western barley market. Contract prices were untraded and unchanged at 9:04 CDT.

Prices in Canadian dollars per metric ton at 9:04 CDT: