WINNIPEG, Manitoba--The ICE Futures canola market was weaker on Wednesday, taking back most of its recent gains as losses in world edible oil markets weighed on values.
European rapeseed and Chicago soyoil futures were weaker on the day, with concerns over reduced Chinese demand for vegetable oil due to COVID-19 lockdown measures in the country behind some of the selling pressure.
Chart signals contributed to the losses, with the nearby July contract dipping below the 20-day moving average. However, support came in at the 100-day moving average, keeping the market within its well-established trading range.
Ongoing concerns over seeding delays across parts of the Canadian Prairies helped temper the declines, with dryness issues in other regions also supportive.
About 14,753 canola contracts traded on Wednesday, which compares with Tuesday when 13,653 contracts changed hands.
Spreading accounted for 6,812 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola
Jul 1,153.60 dn 32.30 Nov 1,054.10 dn 12.10 Jan 1,060.10 dn 12.10 Mar 1,061.30 dn 12.10
Spread trade prices are in Canadian dollars and the volume represents the number of spreads:
Months Prices Volume Jul/Nov 122.00 over to 95.20 over 1,697 Jul/Jan 95.00 over 526 Nov/Jan 5.60 under to 6.30 under 1,053 Nov/Mar 6.40 under 12 Jan/Mar 0.20 under to 1.50 under 45 Mar/May 12.80 over to 9.20 over 73
Source: Commodity News Service Canada
Write to Phil Franz-Warkentin at news@marketsfarm.com
(END) Dow Jones Newswires
05-25-22 1532ET