WINNIPEG, Manitoba--Intercontinental Exchange canola futures were down hard again on Wednesday, as the selloff in the oilseed continued.
An analyst said the funds and farmers are selling their canola, due to Statistics Canada raising this year's canola production by 900,000 tons at 18.3 million. The analyst added major importers have reduced their purchases, believing supplies were now at a comfortable level. As well, he said there are those in the trade who believe canola output is greater than what StatCan reported.
Losses in comparable oils put additional pressure on canola.
Sharp declines in global crude oil prices weighed on vegetable oil values. In turn, that led to declines in the Chicago soy complex, European rapeseed and Malaysian palm oil.
The Canadian dollar was relatively steady at mid-afternoon Wednesday with the loonie at 73.60 U.S. cents compared to Tuesday's close of 73.64.
There were 52,974 contracts traded on Wednesday, which compares with Tuesday when 43,374 contracts changed hands. Spreading accounted for 32,358 contracts traded.
Prices are in Canadian dollars per metric ton: Canola Price Change Jan 649.90 dn 15.70 Mar 659.30 dn 13.80 May 667.70 dn 12.80 Jul 674.50 dn 11.80 Spread trade prices are Canadian dollars and the volume represents the number of spreads: Months Prices Volume Jan/Mar 6.50 under to 9.50 under 10,001 Jan/May 14.90 under to 17.60 under 1,004 Jan/Jul 21.00 under to 23.90 under 312 Mar/May 7.00 under to 8.50 under 2,773 Mar/Jul 13.10 under to 15.30 under 41 Mar/Nov 12.10 under to 13.70 under 130 May/Jul 5.40 under to 6.90 under 1,252 Jul/Nov 2.30 over to 0.10 over 657 Nov/Jan 1.20 under to 1.60 under 9
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
12-06-23 1527ET
