ICE Canola Weakens Early Monday

WINNIPEG, Manitoba--The ICE Futures canola market was weaker Monday morning, taking some direction from the Chicago Board of Trade soy complex to start the week.

Speculative profit-taking added to the selling pressure in canola, as fund traders were thought to be adjusting positions after last week's late rally.

Weakness in the Canadian dollar provided some support, helping temper the declines. Ongoing concerns over tight old crop supplies also underpinned the market.

However, the tight supply situation has been priced into the market for some time and attention is starting to shift to the new crop. Agriculture and Agri-Food Canada released their first supply/demand estimates for 2022/23 late Friday. The government agency expects seeded canola area will be down slightly on the year, but a return to average yields would see production rise to 20.2 million tonnes - an increase of 60 percent on the year.

About 6,400 canola contracts had traded as of 9:52 EST.

Prices in Canadian dollars per metric ton at 9:52 EST:

 
              Price         Change 

Canola

   Mar       1,004.00       dn 18.30 
   May       991.30         dn 17.80 
   Jul       959.00         dn 18.40 
   Nov       817.00         dn 10.40 
 

Source: Commodity News Service Canada

Write to Phil Franz-Warkentin at [e-mail]

(END) Dow Jones Newswires

01-24-22 1025ET