ICE Review : Canola Slides Back Further

WINNIPEG, Manitoba--Intercontinental Exchange canola futures were weaker on Tuesday, as increased production and a lack of support from comparable oils weighed on values.

Statistics Canada announced on Monday that canola production rose from 17.4 million tonnes in September to 18.3 million now. Also, canola output is higher in Australia, going from 5.2 million tonnes to 5.5 million. However, production compared to last year in both countries is lower.

Declines in Chicago soyoil and Malaysian palm oil put pressure on canola, while European rapeseed was narrowly mixed. Chicago soybeans also closed either side of unchanged, and there were gains in soymeal.

Global crude oil prices lost their increases from earlier in the day to be slightly lower.

The Canadian dollar was down at mid-afternoon Tuesday with the loonie at 73.60 U.S. cents compared to Monday's close of 73.85.

There were 43,374 contracts traded on Tuesday, which compares with Monday when 52,514 contracts changed hands.

Spreading accounted for 27,400 contracts traded.

Prices are in Canadian dollars per metric tonne:

 
Canola 
        Price   Change 
  Jan   665.60  dn 11.50 
  Mar   673.10  dn 10.90 
  May   680.50  dn 11.20 
  Jul   686.30  dn 11.50 
 

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

 
 Months                 Prices              Volume 
 Jan/Mar        5.50 under to 7.50 under     8,887 
 Jan/May        14.30 under to 14.90 under     283 
 Jan/Jul        21.00 under                     68 
 Mar/May        7.00 under to 8.20 under     2,665 
 Mar/Jul        12.80 under to 14.30 under      31 
 Mar/Nov        9.90 under to 12.10 under      366 
 May/Jul        5.00 under to 6.70 under       882 
 Jul/Nov        3.80 over to 1.10 over         501 
 Nov/Jan        1.00 under to 3.80 under        17 
 

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

(END) Dow Jones Newswires

12-05-23 1533ET