ICE Canola eases as CBOT soy strength diminishes

Canola contracts on the ICE Futures Canada platform were trading at a slightly easier price level at midday Tuesday (Jan 5) with much of the downward price momentum linked to the downturn in the CBOT soy complex.

Canola futures had found some early support from the gains seen overnight in e-CBOT soy futures, Malaysian palm oil and European rapeseed values, brokers said.

However, when the advances in CBOT soy and soyoil futures began to dissipate and eventually turned into losses, selling in canola also surfaced taking prices down, brokers added.

Helping to put canola futures on the defensive were steady farmer deliveries of the commodity into the cash pipeline. The lack of follow-through demand that was evident early also allowed canola futures to drift to the downside, traders said.

The strength being displayed by the Canadian dollar also contributed to the bearish sentiment in canola.

There were an estimated 6,119 canola contracts traded at 10:48 a.m. CDT. Of the contracts traded, 3,300 were spread related.