WINNIPEG--Intercontinental Exchange canola futures were sharply lower Thursday in the heaviest trading session in a number of weeks. There was significant weakness in the old crop months, as new crop positions saw more modest declines.
At the center of the sharp reductions in the oilseed markets in general is the weather forecast for southern Brazil and much of Argentina. Long overdue rain is in the forecast come the weekend, which would help rectify widespread dry conditions. That triggered something of an exodus out of the nearby contracts in comparable oils, including canola.
Additional pressure came from much smaller losses in Malaysian palm oil, while a step back in global crude oil prices weighed on edible oils.
At mid-afternoon, the Canadian dollar was slightly higher, which placed more pressure on canola. The loonie nudged higher to 80.04 U.S. cents, compared with Wednesday's close of 79.94.
There were 39,133 contracts traded on Thursday, which compares with Wednesday when 23,686 contracts changed hands. Spreading accounted for 20,814 contracts traded.
Settlement prices are in Canadian dollars per metric ton.
Price Change
Canola Mar 984.80 dn 29.90
May 971.30 dn 20.50
Jul 941.20 dn 9.80
Nov 795.80 dn 4.20
Spread trade prices are Canadian dollars and the volume represents the number of spreads:
Months Prices Volume
Mar/May 24.40 over to 11.90 over 6,071
Mar/Jul 67.20 over to 41.60 over 891
Mar/Nov 216.90 over to 199.00 over 56
May/Jul 43.90 over to 28.70 over 2,444
May/Nov 184.10 over to 173.40 over 117
Jul/Nov 152.70 over to 140.00 over 717
Nov/Jan 5.60 over to 3.70 over 111
Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
01-13-22 1545ET
