ICE Review: Canola Drops to Fresh Lows

WINNIPEG, Manitoba--The ICE Futures canola market fell sharply lower, setting fresh contract lows as bearish technical signals countered any support from gains in the Chicago soy market.

Updated supply/demand numbers from the U.S. Agriculture Department were generally neutral for the soy market, with yield estimates unchanged on the month. Soybeans settled with solid gains Thursday after an initial bearish reaction to the data.

However, speculators remained on the sell side of the canola market despite the strength in soybeans. November canola hit the weakest level for the front-month contract in nearly four years.

Seasonal harvest pressure and a lack of significant end-user demand, despite canola looking cheap compared to most other oilseeds, contributed to the declines.

The Saskatchewan canola harvest was 28% complete, according to the latest provincial report.

An estimated 51,809 contracts traded on Thursday, which compares with Wednesday when 30,955 contracts traded. Spreading accounted for 31,088 of the contracts traded.

Settlement prices are in Canadian dollars per metric ton.

Contracts Prices Change

   Nov       561.50  dn 7.80 
   Jan       574.80  dn 7.70 
   Mar       586.80  dn 7.90 
   May       596.20  dn 7.50 
 

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

 
   Contracts  Price                       Volume 
   Nov/Jan    12.50 under to 13.90 under  8,067 
   Nov/Mar    24.00 under to 26.20 under    491 
   Nov/May    33.10 under to 35.70 under     66 
   Nov/Jul    43.30 under                    26 
   Nov/Nov    36.70 under to 42.00 under    221 
   Jan/Mar    11.20 under to 12.50 under  3,199 
   Jan/May    20.30 under to 21.90 under  1,010 
   Mar/May     8.70 under to 9.70 under   1,729 
   Mar/Jul    16.10 under                     1 
   May/Jul     6.70 under to 8.20 under     549 
   Jul/Nov     4.10 over to 0.60 over       175 
   Nov/Jan     4.00 under                    10 
 

Source: MarketsFarm, news@marketsfarm.com

(END) Dow Jones Newswires

September 12, 2024 16:09 ET (20:09 GMT)

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