ICE Review : Canola Selloff Continues on Technical Selling, Lack of Demand

WINNIPEG, Manitoba--The ICE Futures canola market dropped for the third session in a row, settling just above major support levels as chart-based selling pressure and a lack of significant end-user demand weighed on values.

Favorable Prairie crop conditions for the new crop and large old-crop stocks held by farmers contributed to the declines on Wednesday.

Chicago soyoil, European rapeseed and Malaysian palm oil futures were all down, adding to the weaker tone in canola.

Weakness in the Canadian dollar provided some underlying support as currency traders reacted to the Bank of Canada's decision to cut interest rates.

An estimated 66,036 contracts traded on Wednesday, which compares with Tuesday when 68,027 contracts traded. Spreading accounted for 40,300 of the contracts traded.

Settlement prices are in Canadian dollars per metric ton.

Contracts Prices Change

   Jul        617.10  dn 10.90 
   Nov        642.00  dn  9.20 
   Jan        649.50  dn  7.80 
   Mar        655.20  dn  6.50 
 

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

 
   Contracts  Prices                      Volume 
   Jul/Nov    22.90 under to 25.00 under  14,989 
   Jul/Jan    29.00 under to 32.40 under      79 
   Nov/Jan     5.10 under to 7.80 under    3,598 
   Nov/Mar     9.20 under to 13.40 under      78 
   Nov/May    13.40 under to 17.40 under     118 
   Jan/Mar     3.40 under to 5.80 under      724 
   Jan/May     6.50 under                    250 
   Mar/May     0.30 under to 4.40 under      302 
   May/Jul     3.20 over to 2.60 over         12 
 

Source: MarketsFarm, [e-mail]

(END) Dow Jones Newswires

06-05-24 1539ET