ICE Review : Canola Climbs to 4-Month Highs on Short Covering

WINNIPEG, Manitoba--The ICE Futures canola market climbed to its highest levels in four months as speculative short covering built on itself, and prices moved above several key chart points.

Gains in outside markets added to the firmer tone Monday in the Canadian oilseed. Chicago soyoil, European rapeseed and Malaysian palm oil futures were higher on the day.

Rains in the forecast for Western Canada may cause some seeding delays but will be beneficial for crops in the long run, bringing much-needed moisture to dry regions of the Prairies.

Statistics Canada is scheduled to release its stocks as of March 31 report on Tuesday. The numbers should provide a clearer picture of usage to date. Average trade expectations call for stocks of at least a million metric tons above the seven million tons on hand at the same time a year ago.

An estimated 76,598 contracts traded on Monday, which compares with Friday when 42,942 contracts traded.

Spreading accounted for 27,338 of the contracts traded.

Settlement prices are in Canadian dollars per metric ton.

 
   Contracts  Prices   Change 
   Jul        660.90   up 13.90 
   Nov        675.40   up 14.60 
   Jan        681.80   up 13.40 
   Mar        684.70   up 11.50 
 

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

 
   Contracts  Prices                     Volume 
   Jul/Nov    12.80 under to 15.10 under 11,091 
   Jul/Jan    20.40 under to 20.60 under     10 
   Nov/Jan     6.10 under to 8.00 under   2,145 
   Nov/Mar    10.20 under to 11.00 under     39 
   Nov/Nov    40.00 over                      2 
   Jan/Mar     2.10 under to 4.90 under     322 
   Jan/May     3.10 under                     1 
   Mar/May     1.70 over to 0.70 under       57 
   May/Jul     3.50 over                      2 
 

Source: MarketsFarm, [e-mail]

(END) Dow Jones Newswires

05-06-24 1603ET