ICE Grain/Oilseed Review: Canola Continues Lower in Thin Volume

WINNIPEG--The ICE Futures canola market was weaker for the second session in a row on Wednesday, and thin volumes exaggerated the move as investors liquidated long positions.

While hot and dry Prairie weather conditions remain a supportive influence, those drought concerns have been largely priced into the market already. Traders are thought to be waiting to get a better handle on the size of this year's crop.

Chicago Board of Trade soyoil futures were up, which provided some underlying support for canola.

However, Malaysian palm oil was weaker overnight.

About 16,948 canola contracts traded Wednesday, which compares with Tuesday when 14,296 contracts changed hands. Spreading accounted for 8,764 of the contracts traded.

Settlement prices are in Canadian dollars per metric ton.

                          Price     Change
Canola            Nov     883.00    dn 11.70
                  Jan     869.20    dn 10.30
                  Mar     854.80    dn  7.30
                  May     834.70    dn  7.30

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

Months  Prices                          Volume
Nov/Jan  17.70  over to  12.50  over    1,795
Nov/Mar  35.70  over to  28.00  over      112
Nov/Nov 224.80  over to 221.90  over        9
Jan/Mar  18.40  over to  13.90  over    1,493
Jan/May  38.50  over to  33.20  over        2
Jan/Nov 204.30  over                       62
Mar/May  20.90  over to  19.20  over      525
May/Jul  25.70  over to  23.50  over      339
Jul/Nov 146.70  over to 143.50  over       45


  (END) Dow Jones Newswires
  07-28-21 1532ET
  Copyright (c) 2021 Dow Jones & Company, Inc.

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