ICE Review: Canola Follows Soyoil Lower

WINNIPEG, Manitoba--The ICE Futures canola market was weaker on Thursday, as losses in Chicago soyoil weighed on values and canola continued to back away from nearby highs.

European rapeseed and Malaysian palm oil futures were also weaker on the day, adding to the softer tone in canola.

Chart-based positioning was a feature amid ideas the rally earlier in May was starting to look overdone. Recent rains across much of Western Canada were another bearish influence, as dryness concerns have subsided for the time being.

The Saskatchewan agriculture department released their first crop report of the season, pegging total seeding in the province at 12% complete with 6% of intended canola acres in the ground as of May 6.

There were an estimated 58,778 contracts traded on Thursday, which compares with Wednesday when 54,616 contracts traded. Spreading accounted for 36,002 of the contracts traded.

Settlement prices are in Canadian dollars per metric ton.

Canola

            Price       Change 
Jul         651.30     dn 5.40 
Nov         671.10     dn 2.30 
Jan         677.40     dn 1.50 
Mar         680.50     dn 1.40 
 

Spread trade prices are in Canadian dollars and the volume represents the number of spreads:

 
Months      Prices                        Volume 
Jul/Nov     16.10 under to 20.50 under    16,359 
Jul/Jan     21.70 under to 26.60 under        92 
Nov/Jan     5.10 under to 6.40 under       1,512 
Jan/Mar     2.50 under to 3.30 under          32 
Jan/May     2.00 under                         1 
Mar/May     1.80 over to 1.30 over             5 
 

Source: Commodity News Service Canada, news@marketsfarm.com

(END) Dow Jones Newswires

May 09, 2024 16:08 ET (20:08 GMT)

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