ICE Review : Canola Falls Further

WINNIPEG, Manitoba--Canola futures on the Intercontinental Exchange slid further on Friday, caught up in a broad selloff weighing on global equity and energy markets. The July contract settled just above its 20-day moving average, while the new crop November futures dipped below that technical level.

The Dow Jones Industrial Average lost nearly 600 points while the Toronto Stock Exchange was down 700 points. Relatively favourable North American crop weather added to the selling pressure in the grains and oilseeds as traders exited long positions.

While the future of the war in Iran remained uncertain, crude oil shed more than US$1 per barrel. Chicago soyoil, European rapeseed and Malaysian palm oil were also priced lower.

The Canadian Grain Commission reported 252,300 tonnes of canola were exported during the week ended May 31, up from 139,200 tonnes the previous week. So far this marketing year, Canada has exported 7.384 million tonnes, compared to 8.524 million last year.

At mid-afternoon, the Canadian dollar was down one-quarter of a U.S. cent compared to Thursday's close.

There were 89,838 canola contracts traded on Friday, compared to Thursday when 87,189 contracts changed hands. Spreads accounted for 62,272 contracts in today's trade.

Settlement prices are in Canadian dollars per metric tonne.

 
           Price      Change 
Jul       757.00    dn 27.00 
Nov       764.20    dn 23.40 
Jan       771.90    dn 22.00 
Mar       771.10    dn 20.60 

Spread trade prices are in Canadian dollars:

 
Months    Prices                            Volume 
Jul/Nov   3.50 under to 8.90 under          19,126 
Jul/Jan   9.60 under to 16.80 under            188 
Jul/May   20.00 under to 21.50 under            15 
Jul/Jul   16.70 under to 20.20 under            24 
Nov/Jan   5.80 under to 8.00 under           5,903 
Nov/Mar   10.00 under to 13.80 under           873 
Nov/May   13.30 under to 15.70 under            22 
Jan/Mar   3.70 under to 5.90 under           3,108 
Jan/May   4.40 under to 8.50 under              10 
Mar/May   0.10 over to 2.70 under            1,078 
Mar/Jul   3.40 over to 2.00 over                50 
May/Jul   5.50 over to 3.00 over               537 
Jul/Nov   62.80 over to 56.20 over             202 
 

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

(END) Dow Jones Newswires

06-05-26 1530ET