ICE Review : Canola Moves Higher With Some Help

WINNIPEG, Manitoba--Intercontinental Exchange canola futures were higher on Friday, maintaining its gains in light of pressure from most comparable oils. Today also saw the nearby July contract climb above its previous support level of C$600 per ton.

Support for canola came from upticks in Chicago soybeans and soymeal, while soyoil was virtually unchanged. Losses in European rapeseed and Malaysian palm oil were lower on the day.

Modest declines in crude oil put pressure on the oilseeds.

An analyst called Friday a "sunny day for canola" which avoided any downturn. He noted that the Commitment of Traders report, out Monday, could see a greatly increased short position in the oilseed.

Thunderstorms have been forecast for the Prairies through the weekend and into next week. Temperatures during this time are into the low to mid-20 degrees Celsius. There is concern in the trade that a significant portion of the Prairie canola is well behind its development due to wet, cool conditions.

The Canadian Grain Commission reported produced deliveries of canola 46 weeks into the 2023/24 crop year were at 15.79 million tons, compared to 16.28 million a year ago. Exports advanced to 5.85 million tons, but well short of the 7.42 million this time last year. At 9.84 million tons, domestic usage remained ahead of last year's 9.01 million.

The Canadian dollar was virtually unchanged by mid afternoon on Friday with the loonie at 73.01 U.S. cents.

There were 44,052 contracts traded on Friday, compared to the 32,120 contracts that changed hands on Thursday. Spreading accounted for 21,878 contracts traded.

Prices are in Canadian dollars per metric tonne:

Canola 
 
 
Price 
 
Change 
Jul 
 
 
606.10 
 
up 6.70 
Nov 
 
 
622.50 
 
up 4.40 
Jan 
 
 
628.80 
 
up 4.40 
Mar 
 
 
632.50 
 
up 4.30 

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

Months 
 
 
Prices 
 
 
 
 
 
Volume 
Jul/Nov 
 
 
15.70 under to 19.50 under 
 
 
7,274 
Jul/Jan 
 
 
22.70 under to 24.90 under 
 
 
14 
Jul/Mar 
 
 
27.00 under to 28.40 under 
 
 
8 
Nov/Jan 
 
 
6.00 under to 6.60 under 
 
 
2,746 
Nov/Mar 
 
 
9.80 under to 10.40 under 
 
 
22 
Jan/Mar 
 
 
3.30 under to 4.00 under 
 
 
756 
Mar/May 
 
 
1.30 under to 3.10 under 
 
 
119 

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

(END) Dow Jones Newswires

06-21-24 1552ET