ICE Review: Canola Strengthens With Soyoil

WINNIPEG, Manitoba--The ICE Futures canola market was stronger on Wednesday, after trading to both sides of unchanged in choppy activity.

Canola mainly followed the Chicago Board of Trade soyoil futures, which saw some wide price swings during the day but were stronger at the close. European rapeseed futures set fresh highs overnight, which provided some additional support.

The tight supply situation and need to ration demand remained another bullish influence for canola.

However, canola is looking overpriced compared to other options, and demand is already backing away at these price levels.

Strength in the Canadian dollar also weighed on values.

About 26,769 canola contracts traded on Wednesday, which compares with Tuesday when 29,076 contracts changed hands.

Spreading was a feature, accounting for 20,902 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

             Price     Change

Canola

   Nov       867.40    up 6.80
   Jan       860.30    up 5.40
   Mar       851.60    up 6.40
   May       836.50    up 6.80

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

   Months                Prices              Volume
   Nov/Jan    7.40 over to 5.30 over          5,607
   Nov/Mar    17.00 over to 13.50 over        1,021
   Nov/May    31.00 over to 30.00 over          104
   Jan/Mar    10.20 over to 7.40 over         2,095
   Jan/May    25.20 over                        337
   Mar/May    16.10 over to 14.80 over          996
   May/Jul    22.00 over to 20.00 over          244
   Jul/Nov    120.00 over to 108.80 over         47

Source: Commodity News Service Canada

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


  (END) Dow Jones Newswires
  09-22-21 1553ET
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