ICE Canola Dropping With Cease-Fire News at Midday

WINNIPEG, Manitoba--ICE Futures canola contracts were sharply lower at midday Wednesday, reacting to the latest developments in the Middle East.

The U.S., Israel and Iran agreed to a two-week cease-fire shortly before a deadline imposed by U.S. President Trump Tuesday evening, although details of the terms remain unclear.

Crude oil fell sharply on the news, with Brent crude down 13% at US$95 at midday.

Chicago soyoil, European rapeseed and Malaysian palm oil futures were all lower, contributing to the softer tone in canola.

Chart-based speculative selling added to the softer tone in canola as the May contract broke below the lower end of its nearby trading range.

However, historically wide crush margins of about C$350 per tonne above the nearby futures likely had end users buying on the way down.

An estimated 64,700 canola contracts traded as of 11:21 a.m. ET.

Prices in Canadian dollars per metric tonne at 11:21 a.m. ET:

Canola 
           Price      Change 
May       706.00    dn 13.40 
Jul       719.40    dn 13.40 
Nov       716.40    dn 11.20 
Jan       723.30    dn 10.90 
 

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

(END) Dow Jones Newswires

04-08-26 1154ET