ICE Canola Trying to Recover from Earlier Losses

WINNIPEG, Manitoba--ICE canola futures were mixed at midsession Friday, as they try to recover from larger losses earlier in the morning.

An analyst said the Canadian oilseed was "sort of stable" compared with other vegetable oils.

Chicago soyoil was down hard, along with soybeans, while soymeal made modest increases. European rapeseed was to the downside, but Malaysian palm oil was stronger. Global crude oil prices were beginning to fade from its bigger gains but were still providing support to vegetable oils.

Ahead of the Statistics Canada stocks report on Tuesday, the trade is forecasting good increases canola, wheat and the stocks of other grains. The U.S. Department of Agriculture follows up the next day with its monthly supply and demand estimates.

The Canadian Grain Commission reported a 31% drop in producer deliveries of canola during the week ended Jan. 29 at 346,000 tons. The frigid temperatures across the Prairies this week could push those deliveries even lower. Canola exports were up nearly 3% at 179,800 tons and domestic use was down almost 40% at 179,400 tons.

In light of a stronger U.S. dollar, the Canadian dollar fell below 75 U.S. cents Friday. The loonie pulled back to 74.78 U.S. cents, compared with Thursday's close of 75.12 U.S. cents.

About 18,550 canola contracts were traded as of 11:28 a.m. ET.

Prices in Canadian dollars per metric ton at 11:28 a.m. ET:

   Canola     Price     Change 
 
      Mar     825.50    up 0.40 
      May     823.00    dn 0.70 
      Jul     824.10    dn 1.70 
      Nov     805.60    dn 2.30 

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

(END) Dow Jones Newswires

02-03-23 1204ET