ICE Review: Canola Drops Below Chart Support

WINNIPEG, Manitoba--The ICE Futures canola market was sharply lower on Tuesday, breaking below nearby chart support.

Bearish technical signals contributed to the declines, with some stops likely hit on the way down as speculators added to their large net short positions. A lack of significant end user demand on the other side added to the weaker tone, as large old crop carryout supplies and no major concerns over new crop production kept buyers only interested on a scale-down basis.

The Chicago soy complex was also sharply lower, accounting for some spillover selling in canola. European rapeseed and Malaysian palm oil futures were weaker as well.

Statistics Canada releases updated acreage estimates on Thursday, with average trade guesses only calling for minor revisions to seeded canola area from the 21.4 million acres forecast in March.

There were an estimated 43,877 contracts traded on Tuesday, which compares with Monday when 34,660 contracts traded.

Spreading accounted for 21,206 of the contracts traded.

 
Settlement prices are in Canadian dollars per metric ton. 
 
Canola     Price         Change 
 Jul       584.40       dn 16.30 
 Nov       604.30       dn 13.50 
 Jan       611.10       dn 13.10 
 Mar       616.50       dn 11.70 
 
Spread trade prices are in Canadian dollars and the volume represents the number of spreads: 
 
Jul/Nov       16.20 under to 22.00 under       2,837 
Jul/Jan       24.50 under to 27.40 under          15 
Nov/Jan        6.30 under to 8.00 under        5,562 
Nov/Mar       10.40 under to 13.00 under         107 
Nov/May       13.50 under to 16.30 under          50 
Nov/Nov       15.10 over to 15.00 over            20 
Jan/Mar        3.70 under to 5.50 under        1,694 
Jan/May        7.00 under to 8.70 under           32 
Mar/May        2.20 under to 4.40 under          285 
May/Jul        1.30 under                          1 
 

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

(END) Dow Jones Newswires

June 25, 2024 15:23 ET (19:23 GMT)

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