ICE Review : Canola Tests Highs

WINNIPEG, Manitoba--The ICE Futures canola market was stronger on Tuesday, testing contract highs in sympathy with the Chicago Board of Trade soy complex.

Forecasts calling for hot and dry weather in South America accounted for some of the buying in soybeans and soyoil that spilled into canola, as soybean yields in Brazil and Argentina could be hurt by the adverse growing conditions.

Strength in Malaysian palm oil and European rapeseed futures added to the firmer tone, with both of those markets hitting fresh highs of their own.

Bullish technical signals were also supportive. However, ideas that the canola market was looking overpriced at current levels tempered the gains somewhat.

About 18,802 canola contracts traded on Tuesday, which compares with Friday when 8,089 contracts changed hands.

Spreading accounted for 10,326 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

 
              Price      Change 

Canola

   Mar       1,021.40    up 8.80 
   May       998.40      up 15.00 
   Jul       950.00      up 16.60 
   Nov       785.00      up 13.30 
 

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

 
   Months             Prices                Volume 
   Jan/Mar       20.00 over                     1 
   Mar/May       30.50 over to 20.20 over    2,437 
   Mar/Jul       81.10 over to 68.50 over       47 
   Mar/Nov       245.60 over to 234.50 over    655 
   May/Jul       52.90 over to 46.00 over    1,407 
   May/Nov       215.10 over to 211.60 over    250 
   Jul/Nov       169.90 over to 160.80 over    352 
   Nov/Jan       5.80 over to 3.50 over         14 
 

Source: Commodity News Service Canada

Write to Phil Franz-Warkentin at [e-mail]

(END) Dow Jones Newswires

01-04-22 1532ET