ICE Review: Canola Posts Solid Gains

WINNIPEG, Manitoba--The ICE Futures canola market was stronger on Thursday, underpinned by solid demand and gains in outside markets.

European rapeseed and Malaysian palm oil futures both set fresh contract highs overnight. Chicago Board of Trade soyoil futures were also stronger.

Seasonal harvest pressure did temper the upside, with relatively favorable weather conditions across the Prairies allowing farmers to make quick progress. However, the continued dryness was already leading to concerns over the 2022 crop after the drought of 2021 cut into yields.

Strength in the Canadian dollar and ideas that canola remains overpriced compared to other oilseeds also weighed on values.

About 19,134 canola contracts traded on Thursday, which compares with Wednesday when 26,769 contracts changed hands.

Spreading was a feature, accounting for 13,412 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

             Price     Change

Canola

   Nov       876.90    up 9.50
   Jan       868.40    up 8.10
   Mar       858.90    up 7.30
   May       842.00    up 5.50

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

   Months                Prices                 Volume
   Nov/Jan       8.90 over to 5.90 over          2,486
   Nov/Mar       18.50 over to 15.00 over          596
   Nov/May       34.40 over to 30.50 over          104
   Nov/Jul       50.80 over to 50.60 over            3
   Nov/Nov       171.90 over to 170.00 over         10
   Jan/Mar       10.00 over to 8.20 over         1,361
   Jan/May       25.90 over to 24.20 over          248
   Mar/May       17.30 over to 14.10 over        1,235
   Mar/Jul       39.60 over to 35.10 over          316
   May/Jul       22.50 over to 20.10 over          262
   Jul/Nov       119.90 over to 112.20 over         65
   Nov/Jan       10.00 over                         20

Source: Commodity News Service Canada

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


  (END) Dow Jones Newswires
  09-23-21 1529ET
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