ICE Review: Canola Drops With Soyoil

WINNIPEG, Manitoba--The ICE Futures canola market was sharply weaker on Wednesday, as limit-down losses in Chicago Board of Trade soyoil spilled over to weigh on prices.

Malaysian palm oil dropped four percent in overnight activity, which was bearish for vegetable oil markets in general.

Recent rains across Western Canada have helped take some of the weather premium out of the market, although more moisture will be needed within the next two weeks.

Tight old crop supplies and weakness in the Canadian dollar provided some underlying support.

About 18,231 canola contracts traded on Wednesday, which compares with Tuesday when 12,064 contracts changed hands.

Spreading accounted for 5,110 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

              Price    Change

Canola

   Jul       817.10    dn 28.80
   Nov       696.40    dn 27.80
   Jan       697.90    dn 27.80
   Mar       695.30    dn 27.70

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

   Months             Prices                  Volume

Canola

   Jul/Nov       123.30 over to 101.00 over      770
   Jul/Jan       120.00 over to 112.40 over       17
   Nov/Jan       0.20 under to 1.90 under      1,516
   Jan/Mar       3.20 over to 2.30 over          239
   May/Jul       6.70 over to 6.70 over           10
   Jul/Nov       96.00 over to 88.00 over          3

Source: Commodity News Service Canada

Write to Phil Franz-Warkentin at news@marketsfarm.com


  (END) Dow Jones Newswires
  06-16-21 1600ET
  Copyright (c) 2021 Dow Jones & Company, Inc.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.