ICE Review: Canola Slightly Lower in Choppy Trading

WINNIPEG, Manitoba--Intercontinental Exchange canola futures were mostly lower after a good amount of choppy trading. Only the January contract managed to finish higher.

Losses in the Chicago soy complex weighed on canola values Thursday, with upticks in MATIF rapeseed and Malaysian palm oil limiting Canadian oilseed's declines. The vegetable oils were also limited by decreases in crude oil.

Based on reports of larger-than-expected yields, the trade has suggested Canada's canola harvest is bigger than the 20.03 million metric tons estimated by Statistics Canada last month, and the December number could reach or exceed 21 million tons.

Combining across the Prairies is expected to make good progress before the weekend with sunny skies and temperatures from the mid teens Celsius to the low 20s.

Saskatchewan reported its harvest reached 93% complete overall with the province's canola at 89% done.

Lackluster exports have weighed on canola, but domestic use is ahead of last year's pace.

The Canadian dollar was weaker at 71.30 U.S. cents, compared to Wednesday's close of 71.67.

There were 67,424 contracts traded on Thursday, compared to 71,785 on Wednesday. Spreading accounted for 45,986 contracts traded.

Prices are in Canadian dollars per metric ton:

 
   Contracts Price   Change 
 
   Nov       616.90  dn 0.10 
   Jan       631.40  up 0.40 
   Mar       642.30  dn 0.10 
   May       652.10  dn 0.40 
 

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

 
   Contracts  Prices                     Volume 
 
   Nov/Jan    13.40 under to 14.60 under 16,363 
   Nov/Mar    24.70 under to 25.60 under    138 
   Nov/May    34.30 under to 35.30 under      8 
   Nov/Jul    42.40 under to 44.50 under    408 
   Nov/Nov    44.90 under to 46.30 under      3 
   Jan/Mar    10.70 under to 11.50 under  4,067 
   Jan/May    20.40 under to 21.30 under     84 
   Jan/Jul    28.90 under to 29.90 under    103 
   Mar/May     9.50 under to 10.30 under    793 
   May/Jul     8.10 under to 8.70 under     636 
   May/Nov    11.00 under to 11.40 under      1 
   Jul/Nov     2.00 under to 3.90 under     386 
   Nov/Jan     7.50 under to 7.70 under       3 
 

Source: MarketsFarm, news@marketsfarm.com