ICE Review : Canola Continues Downtrend Wednesday

WINNIPEG, Manitoba--The ICE Futures canola market continued its downward slide on Wednesday, as bearish technical signals weighed on values.

Losses in crude oil added to the weakness in canola, with sharp declines in European rapeseed futures also weighing on prices.

However, Chicago soyoil turned higher after early declines and provided some support.

Canola is looking oversold from a chart standpoint, with historically wide crush margins helping limit the losses.

Positioning ahead of the Thanksgiving holiday in the United States kept some caution in the market. U.S. markets will be closed Thursday and only open for reduced hours on Friday, while the canola market will trade its usual hours.

About 28,756 canola contracts traded on Wednesday, which compares with Tuesday when 28,409 contracts changed hands.

Spreading accounted for 19,230 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

 
                Price     Change 

Canola

   Jan          835.10    dn 9.70 
   Mar          829.90    dn 7.70 
   May          833.90    dn 6.00 
   Jul          838.90    dn 5.00 
 

Spread trade prices are in Canadian dollars and the volume

represents the number of spreads:

 
   Months               Prices                Volume 
   Jan/Mar       8.00 over to 4.00 over       3,160 
   Jan/May       1.00 over                       20 
   Jan/Jul       4.00 under to 4.20 under        20 
   Mar/May       2.70 under to 4.00 under     3,138 
   Mar/Jul       7.70 under to 9.10 under       529 
   May/Jul       4.00 under to 5.30 under     2,516 
   Jul/Nov       16.50 over to 14.50 over       232 
 

Source: Commodity News Service Canada

Write to Phil Franz-Warkentin at [e-mail]

(END) Dow Jones Newswires

11-23-22 1510ET