ICE Canola Midday : Weaker Oils, Prairie Weather Pull Down Prices

WINNIPEG, Manitoba--Intercontinental Exchange canola futures were weaker at mid-session Tuesday, due to declines in comparable oils.

"We got a sharp break in [soyoil]," a trader commented, noted the commodity has been prone to pullbacks recently.

He said those losses in soyoil are a result of reduced demand from the biofuel sector and the steady flow of canola oil.

Coupled with rain across the Canadian Prairies, canola continued to be driven lower, the trader added.

"Canola has little hope. Canola was looking reasonably firm a few days back," he said, warning if there is more rain across the region that the oilseed could drop further back.

Besides the weakness in the Chicago soy complex, more pressure on the Canadian oilseed came from losses in European rapeseed and Malaysian palm oil. Modest declines in crude oil further exacerbated the situation.

The Canadian dollar turned weaker in the face of strong upticks in its United States counterpart. By late Tuesday morning the loonie fell to 72.75 U.S. cents compared to Monday's close of 73.22.

Approximately 28,500 canola contracts were traded as of 11:29 EDT, with prices in Canadian dollars per metric ton:

Canola 
          Price     Change 
Jul       620.40    dn 12.60 
Nov       637.10    dn 12.00 
Jan       645.70    dn 11.40 
Mar       650.60    dn 10.90 
 

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

(END) Dow Jones Newswires

04-30-24 1154ET