ICE Review : Canola Selloff Continues With Support Largely Absent

WINNIPEG, Manitoba--The ICE Futures canola market fell to fresh contract lows on Thursday, lacking any fresh supportive news.

Losses in Chicago soyoil and a firmer tone in the Canadian dollar contributed to the declines, with speculators thought to be adding to their large short positions. Malaysian palm oil and European rapeseed futures were also lower on the day.

While scale-down end user buying likely provided some support, export demand continues to run well behind the year-ago level with the market trending lower in an effort to uncover more demand, according to participants.

However, the market looks oversold according to some technical indicators.

There were an estimated 77,232 contracts traded on Thursday, which compares with Wednesday when 90,567 contracts traded. Spreading was a feature as participants were busy rolling their positions out of the nearby March contract, accounting for 63,062 of the contracts traded.

 
Settlement prices are in Canadian dollars per metric ton. 
 
Canola      Price            Range 
 Mar        567.00          dn 13.80 
 May        577.00          dn 12.40 
 Jul        586.80          dn 11.00 
 Nov        592.70          dn 9.60 
 
Spread trade prices are in Canadian dollars and the volume represents the number of spreads: 
 
Mar/May      8.20 under to 10.70 under      12,124 
Mar/Jul     17.00 under to 20.40 under       1,996 
May/Jul      8.10 under to 10.40 under      12,014 
May/Nov     13.40 under to 16.00 under          40 
May/Jan     20.10 under to 20.20 under           2 
Jul/Nov      4.30 under to 7.10 under        5,324 
Nov/Jan      4.30 under to 5.80 under           29 
Jan/Mar      0.40 over                           2 
 

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

(END) Dow Jones Newswires

02-15-24 1531ET