ICE Review: Canola Drops with Decline in Other Markets

WINNIPEG, Manitoba -- The ICE Futures canola market was lower on Monday, as broad weakness in most outside financial and commodity markets sparked by default concerns at a Chinese real estate company spilled over to weigh on prices.

Chicago Board of Trade soyoil futures fell to their lowest levels in three months, which contributed to the declines in canola.

Seasonal harvest pressure was another bearish influence, although concerns over the size of Canada's drought-stricken crop remained supportive.

Weakness in the Canadian dollar also helped temper the declines in canola.

About 17,426 canola contracts traded on Monday, which compares with Friday when 22,259 contracts changed hands.

Spreading was a feature, accounting for 10,780 of the contracts traded.

Settlement prices are in Canadian dollars per metric ton.

                      Price                Change
   Canola          Nov 861.10             dn 12.60
                   Jan 853.80             dn 12.50
                   Mar 842.90             dn 11.20
                   May 826.80             dn 10.60

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

                Months             Prices                       Volume

Canola

               Nov/Jan             8.60 over to 6.30 over       2,167
               Nov/Mar            21.40 over to 17.10 over         49
               Nov/May            36.40 over to 34.40 over          6
               Nov/Jul            59.00 over to 58.00 over         25
               Jan/Mar            13.10 over to 9.70 over       1,963
               Jan/May            27.70 over to 25.20 over        191
               Mar/May            18.90 over to 15.00 over        567
               Mar/Jul            35.00 over                       25
               May/Jul            22.50 over to 19.10 over        365
               Jul/Nov           114.30 over to 108.80 over        32

Source: Commodity News Service Canada (news@marketsfarm.com)


  (END) Dow Jones Newswires
  09-20-21 1610ET
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