ICE Review: Canola Drops Sharply

WINNIPEG, Manitoba--The ICE Futures canola market was sharply weaker on Tuesday, falling in sympathy with the Chicago Board of Trade soy complex as the futures had a bearish reaction to updated supply/demand data from the United States Department of Agriculture.

Upward revisions to both U.S. and world soybean ending stocks estimates from the USDA weighed heavily on both soybean and canola futures, with bearish chart-signals contributing to the weaker tone in the Canadian oilseed.

Overbought price sentiment after last week's rally, together with the firm Canadian dollar, also weighed on prices.

However, tight supplies and the need to ration demand remained supportive on the other side.

About 37,778 canola contracts traded on Tuesday, which compares with Friday when 21,729 contracts changed hands.

Canadian markets were closed Monday for Thanksgiving.

Spreading accounted for 24,358 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

           Price      Change

Canola

   Nov     901.10    dn 25.80
   Jan     890.80    dn 24.90
   Mar     877.90    dn 24.60
   May     856.00    dn 25.60

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

   Months          Prices                  Volume
   Nov/Jan  14.00 over to 9.00  over        5,819
   Nov/Mar  28.40 over to  22.00 over         854
   Nov/May  47.40 over to  45.60 over          17
   Jan/Mar  16.00 over to  12.10 over       3,041
   Jan/May  38.20 over to  34.00 over          62
   Jan/Jul  62.30 over to  58.00 over          17
   Mar/May  24.30 over to  20.80 over       1,450
   Mar/Jul  47.90 over to  44.00 over         130
   May/Jul  24.90 over to  22.60 over         565
   Jul/Nov 122.00 over to 117.60 over         224

Source: Commodity News Service Canada

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


  (END) Dow Jones Newswires
  10-12-21 1528ET
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