WINNIPEG, Manitoba--The ICE Futures canola market was sharply higher on Friday, taking back most of the losses posted the previous two sessions as a rally in Chicago soyoil provided spillover support.
Monthly supply/demand estimates from the United States Department of Agriculture included the agency's first balance sheets for the 2024/25 crop, with updates to South American production estimates also released. While the numbers were somewhat bearish for soybeans, prices still moved higher with soyoil leading beans higher on talk that the U.S. government was considering raising import duties on used cooking oil from China. If the tariffs are raised, that would drive more demand towards soyoil for making biofuel.
European rapeseed was also stronger, while Malaysian palm oil posted small losses.
Recent rains across Western Canada helped improve moisture conditions in many areas, tempering the upside in canola.
There were an estimated 50,000 contracts traded on Friday, which compares with Thursday when 58,778 contracts traded.
Spreading accounted for 25,212 of the contracts traded.
Settlement prices are in Canadian dollars per metric ton. Canola Price Change Jul 663.60 up 12.30 Nov 681.60 up 10.50 Jan 687.70 up 10.30 Mar 691.70 up 11.20 Spread trade prices are in Canadian dollars and the volume represents the number of spreads: Jul/Nov 16.10 under to 20.20 under 10,096 Jul/Jan 22.20 under to 26.10 under 142 Nov/Jan 5.70 under to 6.90 under 1,598 Nov/Mar 8.70 under to 10.70 under 155 Jan/Mar 2.50 under to 4.50 under 569 Mar/May 2.00 over to 1.30 over 17 Mar/Jul 6.70 over 11 May/Jul 5.00 over 18
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
05-10-24 1549ET