ICE Canola Drops on Mideast Ceasefire News

WINNIPEG, Manitoba--ICE canola futures were weaker Wednesday morning, as a selloff in crude oil spilled into the global vegetable oil markets.

The United States, Israel and Iran agreed to a two-week ceasefire shortly before a deadline imposed by U.S. President Donald Trump Tuesday evening, although details of the terms remain unclear.

Crude oil fell sharply on the news, with Brent crude down 17 percent at US$90.55 Wednesday morning.

Chicago soyoil, European rapeseed and Malaysian palm oil futures were all lower, contributing to the softer tone in canola.

Chart-based speculative selling added to the softer tone in canola, although historically wide crush margins likely had end users buying on the way down.

About 35,100 canola contracts had traded as of 9:38 EDT.

Prices in Canadian dollars per metric tonne at 9:38 EDT:

 
           Price      Change 
May       709.20    dn 10.20 
Jul       722.20    dn 10.60 
Nov       718.70     dn 8.90 
Jan       725.50     dn 8.70 
 

Source: Commodity News Service Canada, [e-mail]

(END) Dow Jones Newswires

04-08-26 1003ET