ICE Review : Oilseed Selloff Drags Down Canola

WINNIPEG, Manitoba--Intercontinental Exchange canola futures dropped hard, forced to follow another day of sharp declines in the Chicago soy complex.

Canola also felt the pressure Tuesday from sizeable pullbacks in European rapeseed and Malaysian palm oil. Losses in crude oil added to the slide in oilseeds.

Canola had been holding its own against the drop in Chicago soyoil, a trader said, but the latter fell so much and so quickly that the Canadian oilseed had no choice but to fall back.

Added to the declines was the improving weather across the Prairies. While temperatures move above normal, the ample amounts of soil moisture combined with rising humidity will allow the region's crop to withstand the heat. This will also mean the crops have the opportunity to catch up in their development.

The Canadian dollar remained unchanged at 73.35 U.S. cents.

An estimated 48,156 contracts traded on Tuesday, compared to the 46,229 contracts that changed hands on Monday. Spreading accounted for 21,402 contracts traded.

Prices are in Canadian dollars per metric ton:

Contracts Price Change

   Nov        632.30 dn 16.10 
   Jan        641.60 dn 16.60 
   Mar        649.40 dn 16.40 
   May        655.70 dn 15.60 
 

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

 
   Contracts Prices                     Volume 
 
   Nov/Jan    9.10 under to 10.00 under 6,106 
   Nov/Mar   16.50 under to 18.10 under   796 
   Nov/May   22.70 under to 24.80 under    43 
   Nov/Jul   24.90 under to 25.40 under     4 
   Nov/Nov    9.50 over to 9.40 over        4 
   Jan/Mar    7.20 under to 8.50 under  2,877 
   Jan/May   12.70 under to 12.80 under     5 
   Mar/May    5.20 under to 7.00 under    795 
   May/Jul    1.80 under to 2.90 under     16 
   Jul/Nov   34.00 over to 30.30 over      55 
 

Source: MarketsFarm, [e-mail]

(END) Dow Jones Newswires

07-09-24 1537ET