ICE Canola Correcting Higher in Early Trading

WINNIPEG, Manitoba--The ICE Futures canola market was posting solid gains Thursday morning, seeing a correction after dropping for the previous six sessions.

The January contract hit a fresh six-month low of C$645.80 per metric ton in overnight activity before uncovering support to climb C$20 per metric ton off that level.

A rally in Chicago soyoil provided spillover support, with European rapeseed and Malaysian palm oil also moving higher. End-user bargain hunting and a lack of significant farmer selling likely contributed to the gains.

However, Statistics Canada's upward revision to the country's canola production on Monday continued to overhang the market. The government agency pegged the crop at 18.3 million metric tons, which was up by nearly a million metric tons from the September estimate and above average trade guesses, but still down slightly on the year.

About 12,700 canola contracts had traded as of 9:44 a.m. EST.

Prices in Canadian dollars per metric ton at 9:44 a.m. EST:

 
                   Price     Change 
Canola        Jan  664.60  up 14.70 
              Mar  673.00  up 13.70 
              May  681.10  up 13.40 
              Jul  687.90  up 13.40 
 
 

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

(END) Dow Jones Newswires

12-07-23 1017ET