WINNIPEG, Manitoba--The ICE Futures canola market was steady to lower Tuesday following a sharp decline in crude oil.
Crude oil fell by $2 a barrel Tuesday morning due to weakened demand. In turn, European rapeseed and Malaysian palm oil were also down, with the latter resuming trading after a holiday.
The Canadian dollar lost more than four-tenths of a U.S. cent compared with Monday's close, giving canola prices some support.
One analyst said that weakness in both corn and wheat is also putting pressure on canola prices.
"China cancelled purchases of (U.S.) corn this week. The corn market has really been in a dive, along with wheat. So it's affected the ethanol, it's affected the biodiesel," the analyst said. "If the loonie was steady today, canola would be down C$10 to C$15 (per metric ton)."
Statistics Canada will release its first survey-based seeding intentions report for 2023-24 on Wednesday morning, with the trade anticipating Canadian canola acres to increase to 22 million.
Nearly 16,300 canola contracts were traded as of 10:31 a.m. CDT.
Price Change
Canola May 767.70 dn 0.10
Jul 723.30 dn 4.40
Nov 691.20 dn 6.20
Jan 696.20 dn 6.20
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
04-25-23 1203ET
