ICE Canola Correcting Lower at Midday Friday

WINNIPEG, Manitoba--ICE Futures canola contracts were weaker at midday Friday, seeing a modest correction to end the week.

Speculative profit-taking was a feature, as values backed away from the 10-month highs hit earlier in the week.

Losses in crude oil accounted for some spillover selling pressure, although continued strength in Chicago soyoil was supportive.

The Canadian dollar was at seven-week highs relative to its United States counterpart, which cuts into crush margins and makes exports less attractive to international buyers.

However, crush margins remain historically wide at about C$350 per ton above the July futures. That's roughly triple the margins reported at the same time a year ago.

Canada exported 194,000 tons of canola during the week ended April 28, which was up 40 per cent from the previous week, reported the Canadian Grain Commission. Crop year-to-date exports at 6.2 million tons compare with 7.7 million tons a year ago.

An estimated 27,300 canola contracts traded as of 11:52 a.m. EDT.

Prices in Canadian dollars per metric ton at 11:52 a.m. EDT:

 
           Price      Change 
Jul       757.40     dn 6.40 
Nov       756.80     dn 4.50 
Jan       763.80     dn 3.30 
Mar       769.10     dn 2.40 
 

Source: Commodity News Service Canada, [e-mail]

(END) Dow Jones Newswires

05-01-26 1229ET