WINNIPEG, Manitoba--The ICE Futures canola market continued its ongoing downturn on Thursday to go along with weakness in comparable oils.
Chicago soyoil was down, as well as European rapeseed and Malaysian palm oil. Crude oil dropped by nearly $2 per barrel due to a rise in U.S. stockpiles and an assessment of Chinese demand.
One trader said that while canola prices are still relatively firm, they are being pulled down by soybeans and soyoil. While the U.S. Agriculture Department reduced its soybean production estimate for Argentina in its supply/demand estimates released Wednesday, there will still be a healthy supply from South America.
"The bottom line from the USDA report that I've got was that even though they cut the Argentine crop a lot more than expected, the combined Brazilian/Argentine crop would still be an all-time record by eight million tons," the trader said. "I think that realization is starting to hit the market now."
The Canadian dollar was mostly steady from Wednesday's close.
Nearly 21,940 canola contracts were traded.
Prices in Canadian dollars per metric ton at 11:29 a.m. EST.
Canola
Price Change
Mar 820.40 dn 7.80
May 818.00 dn 8.80
Jul 817.00 dn 9.80
Nov 798.10 dn 11.40
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
02-09-23 1207ET
