ICE Review : Canola Under Pressure From Crude Oil, Farmer Selling

WINNIPEG, Manitoba–Intercontinental Exchange canola futures ended Friday on a mixed note as they attempted to regain their advances from earlier in the session.

While support for canola came from upticks in European rapeseed, Malaysian palm and Chicago soymeal, losses in soybeans and soyoil stymied a recovery. Small losses in crude oil put some pressure on the vegetable oils. Farmer selling also weighed on canola values.

Canola exports continued to limp along with less than 84,000 metric tons for the week ended May 26, according to the Canadian Grain Commission. At that pace, exports would be within striking distance of Agriculture and Agri-Food Canada’s revised projection of 6 million metric tons.

Parts of Alberta and Saskatchewan were forecast to get rain Friday, with Manitoba getting its turn for more moisture early next week. Prairie temperatures are to climb to the high 20 degrees Celsius during the weekend.

Alberta reported spring planting provincewide reached 77% as of May 28, with the canola two-thirds complete.

The Canadian dollar was higher by mid-afternoon Friday with the loonie at 73.36 U.S. cents compared to Thursday’s close of 73.11.

There were 35,095 contracts traded on Friday, down from 45,524 contracts that changed hands on Thursday. Spreading accounted for 19,584 contracts traded.

Prices are in Canadian dollars per metric ton.

Contract Price Change
Jul 661.00 up 0.80
Nov 683.20 unchanged
Jan 690.20 dn 0.80
Mar 696.60 dn 1.40

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

Months Prices Volume
Jul/Nov 21.90 under to 23.20 under 8,115
Jul/Jan 29.80 under to 30.60 under 98
Nov/Jan 7.00 under to 8.20 under 1,287
Nov/Mar 13.60 under to 14.80 under 16
Jan/Mar 6.20 under to 7.10 under 234
Jan/May 9.90 under to 10.40 under 5
Mar/May 2.90 under to 3.60 under 21
May/Jul 3.60 over to 3.00 over 8
Jul/Nov 38.00 over 8

Source: Commodity News Service Canada, news@marketsfarm.com

(END) Dow Jones Newswires

05-31-24 1531ET