ICE Review : Canola Weakens, But Off Session Lows

WINNIPEG--The ICE Futures canola market was weaker Wednesday, although activity was choppy with prices finishing well off their session lows as the market attempted to find its footing after sharper declines earlier in the week.

The most-active November contract dipped below the psychological C$800-per-tonne mark in overnight activity but settled well above that chart level--losing only C$3.30 on the day at C$825.30 at the close.

Continued losses in Chicago soyoil weighed on canola, with crude oil and Malaysian palm oil also weaker. However, gains in European rapeseed and losses in the Canadian dollar provided some underlying support.

End user buying underneath the market and a lack of significant farmer selling also helped temper the declines in canola amid ideas that the recent losses were starting to look overdone.

About 24,413 canola contracts traded on Wednesday, which compares with Tuesday, when 27,105 contracts changed hands. Spreading accounted for 12,934 of the contracts traded.

Settlement prices are in Canadian dollars per metric ton.

 
Canola     Nov 825.30  dn 3.30 
           Jan 832.90  dn 3.50 
           Mar 840.50  dn 3.40 
           May 847.10  dn 2.80 
 

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

 
      Months Prices Volume 
      Nov/Jan   6.60 under to  8.30 under     3,974 
      Nov/Mar  15.10 under to 15.60 under        40 
      Nov/May  21.80 under to 22.00 under        25 
      Nov/Jul  23.40 under                        2 
      Jan/Mar   6.90 under to  8.00 under     1,605 
      Jan/May  13.40 under to 13.50 under        18 
      Mar/May   5.60 under to  7.10 under       672 
      Mar/Jul  10.60 under to 10.90 under         5 
      May/Jul   2.70 under to  4.70 under        89 
      Jul/Nov  49.20 over  to 31.60 over         37 
 
 

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

(END) Dow Jones Newswires

07-06-22 1524ET