ICE Review : Canola Drops Below Chart Support

WINNIPEG, Manitoba--The ICE Futures canola market was weaker on Tuesday, dropping below psychological support as speculative selling weighed on values.

The nearby March contract fell below C$800 per tonne, which was bearish from a chart standpoint.

Concerns that Australia's large canola crop will cut into some Canadian export demand added to the softer tone, according to participants.

Losses in Chicago soyoil also weighed on values, although soybeans held closer to unchanged and European rapeseed was higher on the day. The Malaysian palm oil market was untraded due to the Lunar New Year holiday.

Domestic crush margins remain strong and scale-down end user demand provided some support.

About 34,963 canola contracts traded on Tuesday, which compares with Monday when 27,510 contracts changed hands.

Spreading accounted for 25,806 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

 
                Price     Change 

Canola

   Mar          796.70    dn 10.00 
   May          796.20    dn 10.20 
   Jul          797.60    dn 10.70 
   Nov          782.60    dn 9.60 
 

Spread trade prices are in Canadian dollars and the volume represents the number of spreads:

 
   Months             Prices                 Volume 
   Mar/May    1.90 over to 0.10 over          6,039 
   Mar/Jul    0.40 over to 1.30 under           877 
   Mar/Nov    14.00 over                         25 
   May/Jul    0.30 under to 2.00 under        3,645 
   May/Nov    17.00 over to 14.00 over          380 
   Jul/Nov    19.30 over to 15.00 over        1,895 
   Nov/Jan    2.00 under to 2.60 under           42 
 

Source: Commodity News Service Canada

Write to Phil Franz-Warkentin at [e-mail]

(END) Dow Jones Newswires

01-24-23 1531ET