ICE Cda Grain/Oilseed Review: Canola Drops On Sybn Weakness

Position evening ahead of the weekend was a feature of the activity with the mixed signals from the outside markets helping to create a choppy trading atmosphere. Some of the activity in canola also reflected the rolling out of positions in the nearby May future in the July contract by a variety of market participants, brokers said.

Profit-taking and overhead technical resistance contributed to some of the downward price movement seen in canola, traders said. Some late day hedge selling by elevator companies in anticipation of producers pricing on-farm canola supplies helped to weigh on prices. Brokers noted that the cash price for canola was at or near C$10 a bushel in a number of locations across western Canada, and was seen as a point in which producers will sell.

The losses in canola had been tempered by strength in CBOT soyoil values, but when those contracts turned mixed at the close, additional sell-orders surfaced in canola, traders said.

The losses in canola were limited by steady domestic processor demand with crush margins continuing to sit at very profitable levels, brokers said.

Some support in canola overnight had come from the small advances seen in Malaysian palm oil and Matif rapeseed futures.

Routine export business with Japan and Mexico also offered canola some underlying support.

There were an estimated 21,726 canola contracts traded during Friday’s session, up from 16,389 during the previous session. Of the contracts traded Friday, 13,830 were spread related.

Western barley futures were lower with it only taking a small amount of commercial selling to push the July and October contracts down, traders said. Weakness in CBOT corn futures also generated some downward price action in barley.

An estimated 3 barley contracts changed hands during the session. On Thursday, 29 barley contracts were traded. Of the contracts traded Friday, 2 were spread related.

Prices are in Canadian dollars per metric ton.