ICE Closing Review : Canola Loses Ground Without Support From Other Oils

WINNIPEG, Manitoba--Intercontinental Exchange canola futures failed to recover from sudden losses Monday, due to insufficient support from comparable oils.

Chicago soybeans and soymeal were higher, and soyoil was relatively steady. European rapeseed was slightly higher and there were small losses in Malaysian palm oil. Global crude oil prices were narrowly mixed, providing little direction to the vegetable oils.

The nearby November canola contract inched toward 840 Canadian dollars ($617.49) per metric ton but needed more support from comparable oils.

The Canadian oilseed could get a boost out of Tuesday's production estimates from Statistics Canada. The average trade guess pegged 2023/24 production at 17.4 million metric tons versus the 18.8 million tons predicted by Agriculture and Agri-Food Canada and the 19 million tons seen by the U.S. Department of Agriculture.

Crush margins continued to climb higher, further underpinning canola.

Alberta reported on Friday that its canola rated 42% good to excellent and the oilseed's harvest was just underway at 1% complete.

The Canadian dollar was virtually unchanged at mid-afternoon Monday, with the loonie at 73.52 U.S. cents, compared with Friday's close of 73.50.

There were 23,426 contracts traded on Monday, down from Friday's volume of 25,913 contracts.

Spreading accounted for 12,390 contracts traded.

 
Prices are in Canadian dollars per metric ton. 
 
     Price     Change 
Nov  809.10    dn 2.20 
Jan  815.80    dn 2.70 
Mar  818.80    dn 2.20 
May  817.40    dn 2.10 
 

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

Months             Spread                Volume 
Nov/Jan     6.50 under to 7.30 under     4,679 
Nov/Mar     9.00 under to 10.20 under      278 
Nov/Jul     0.90 under to 3.50 under        17 
Jan/Mar     2.00 under to 3.00 under       782 
Jan/May     1.20 under to 1.40 under         3 
Jan/Jul     4.70 over to 4.30 over           2 
Jan/Nov     45.90 over                       2 
Mar/May     2.50 over to 1.40 over         334 
May/Jul     6.50 over to 5.20 over          62 
Jul/Nov     43.90 over to 40.00 over        36 
 

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

(END) Dow Jones Newswires

08-28-23 1553ET