WINNIPEG, Manitoba--The ICE Futures canola market was weaker Tuesday, seeing a continuation of Monday's selloff as losses in outside markets weighed on values.
Chicago soyoil, European rapeseed and Malaysian palm oil futures were all lower. Crude oil was slightly firmer.
Poor export demand continues to overhang the canola market, according to a trader who noted that the export pace is running about 2.2 million metric tons behind the previous year's pace.
The widening old-/new-crop spread was another bearish indicator according to the trader, with end users showing little concern over sourcing old-crop supplies ahead of the harvest.
While July canola has often traded at a premium to the new-crop November futures at this time of year, it was trading at a discount of about C$16 per ton on Tuesday.
Forecasts calling for precipitation across dry areas of Western Canada over the next week contributed to the declines.
The Canadian dollar was weaker relative to its U.S. counterpart, providing some underlying support.
An estimated 39,200 canola contracts traded as of 12:02 p.m. EDT.
Prices in Canadian dollars per metric ton:
Contracts Prices Change
May 615.10 dn 4.80 Jul 626.80 dn 4.60 Nov 642.90 dn 2.90 Jan 651.30 dn 2.10
Source: MarketsFarm, news@marketsfarm.com
(END) Dow Jones Newswires
04-16-24 1234ET
