ICE Review: Canola Falls to Weakest Levels in Nearly Four Years

WINNIPEG, Manitoba--The ICE Futures canola market dropped to its weakest levels in nearly four years on Friday, breaking below major chart support.

The November contract had held above C$560 per ton for the past month, but speculative selling quickly built on itself as the market fell below that level on Friday. Losses in Chicago soyoil, European rapeseed and Malaysian palm oil contributed to the weakness in canola, although the Canadian oilseed outpaced those markets to the downside.

News that India was raising import taxes on edible oils by 20% accounted for some of the broad selling pressure in the global oilseed markets, including canola.

Farmers continue to make good harvest progress across most of Western Canada, although many market participants expect actual production may end up below the 19.5 million tons forecasted by Statistics Canada in August. The agency releases its next model-based estimates on Monday, Sept. 16.

There were an estimated 59,100 contracts traded on Friday, which compares with Thursday when 51,809 contracts traded.

Spreading accounted for 36,550 of the contracts traded.

 
Settlement prices are in Canadian dollars per metric ton. 
 
Canola     Price         Change 
 Nov       541.80       dn 19.70 
 Jan       555.90       dn 18.90 
 Mar       569.30       dn 17.50 
 May       579.70       dn 16.50 
 
Spread trade prices are in Canadian dollars and the volume represents the number of spreads: 
 
Nov/Jan       13.10 under to 15.00 under       11,086 
Nov/Mar       25.50 under to 28.20 under          485 
Nov/May       35.20 under to 38.70 under          200 
Nov/Jul       43.30 under                           1 
Nov/Nov       41.70 under to 42.30 under           19 
Jan/Mar       11.90 under to 13.50 under        3,718 
Jan/May       21.70 under to 24.00 under          517 
Mar/May        9.30 under to 10.60 under        1,275 
May/Jul        7.60 under to 8.90 under           392 
Jul/Nov        2.90 over to 3.90 under            535 
Nov/Jan        4.00 under                          47 
 

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

(END) Dow Jones Newswires

September 13, 2024 15:39 ET (19:39 GMT)

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