October 30, 2009

Canola contracts traded on the ICE Canada platform were stronger at 11:50 a.m. EDT Thursday (October 29), taking some direction from the gains seen in the CBOT soy complex. Trade in canola was described as light and routine.

Improving crush margins were bringing in some domestic crusher demand to the canola market, said a broker. He said a lack of farmer selling was also contributing to the strength in canola.

Ongoing harvest delays to the last of the western Canadian canola crop were also supportive, although the broker thought the unharvested fields were starting to be less of a factor in the futures market.

The uncertainty about future canola sales to China, due to recently announced phytosanitary requirements from the country, limited the upside in canola.

"Canola won't get into a bullish scenario until the Chinese situation is cleared up," said the broker.

A stronger tone in the Canadian dollar also put some pressure on canola values, making the commodity more expensive to international buyers.

At 11:50 a.m. EDT, about 3,800 canola contracts had changed hands. The Nov/Jan spread was a feature as participants continue to roll out of the nearby November contract before its expiry.

Western barley futures were steady to lower in quiet trade. About 25 contracts had traded by midsession.