WINNIPEG, Manitoba--Intercontinental Exchange canola futures closed lower on Wednesday, giving up some of the gains made yesterday. However, canola poked above unchanged in choppy trading towards the end of the session before slipping back.
Support for canola came from upticks in Chicago soybeans and soymeal as well as Malaysian palm oil. Chicago soyoil was virtually unchanged, which provided little direction to the Canadian oilseed. Global crude oil prices fell back which weighed on vegetable oil values.
An analyst said there has been some farmer selling on the idea prices are very likely to continue lower. He added there was some spec selling along with a limited amount of commercial buying. He noted the spreads are getting wider, indicating the market is well covered in the short term.
The Canadian dollar pushed upward at mid-afternoon Wednesday with the loonie at 74.67 U.S. cents compared to Tuesday's close of 74.53.
There were 60,448 contracts traded on Wednesday, compared to Tuesday when 61,131 contracts changed hands. Spreading accounted for 44,904 contracts traded.
Prices are in Canadian dollars per metric ton: Canola Price Change Mar 610.40 dn 3.10 May 618.00 dn 1.70 Jul 622.30 dn 1.50 Nov 622.70 dn 0.80 Spread trade prices are Canadian dollars and the volume represents the number of spreads: Months Prices Volume Mar/May 6.00 under to 8.00 under 11,554 Mar/Jul 10.40 under to 12.40 under 429 Mar/Nov 11.10 under to 14.30 under 35 May/Jul 4.00 under to 4.90 under 5,841 May/Nov 6.60 under 1 Jul/Nov 0.60 over to 2.60 under 4,530 Nov/Jan 4.40 under to 5.00 under 57 Jan/Mar 1.20 over to 0.40 over 5
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
01-31-24 1538ET
