ICE Canola Falls to Three-Month Lows, Tests Chart Support

WINNIPEG, Manitoba--The ICE Futures canola market was weaker Thursday, falling below nearby support that encouraged additional speculative selling.

The nearby November contract was trading below C$710 per metric ton, hitting fresh three-month lows with the next support at the psychological C$700 per ton level.

Losses in Chicago soybeans and soyoil contributed to the declines in canola. European rapeseed and Malaysian palm oil futures also were down on the day.

A lack of significant export demand, as Canadian canola remains expensive on the global market, also weighed on prices.

However, domestic crush margins remain historically wide, which should be encouraging scale-down buying interest from processors.

The Canadian dollar was holding relatively steady Thursday after moving sharply lower relative to its U.S. counterpart over the past week.

An estimated 30,000 canola contracts traded as of 11:40 a.m. EDT.

Prices in Canadian dollars per metric ton:

Canola

Contracts Prices Change

   Nov        706.90  dn 3.90 
   Jan        715.50  dn 4.10 
   Mar        723.90  dn 3.70 
   May        727.90  dn 4.60 
 

Source: MarketsFarm, [e-mail]

(END) Dow Jones Newswires

10-05-23 1224ET