WINNIPEG, Manitoba--The ICE Futures canola market continued to slide on Tuesday, reaching its weakest levels in over a month as speculative selling pressure and a lack of significant end-user demand weighed on values.
Losses in outside markets contributed to the declines, with Chicago soyoil, European rapeseed and Malaysian palm oil futures all lower on the day.
While a weaker tone in the Canadian dollar helped underpin domestic crush margins, a trader said demand from exporters remained lackluster. He said the widening discount for the old crop July contract compared to the new crop November futures was a sign of the lack of nearby demand.
Forecasts calling for welcome precipitation across dry areas of Western Canada over the next week were also bearish.
There were an estimated 80,856 contracts traded Tuesday, up from Monday's 70,724 contracts. Spreading accounted for 49,380 of the contracts traded.
Settlement prices are in Canadian dollars per metric ton.
Canola Price Change May 612.50 dn 7.40 Jul 623.50 dn 7.90 Nov 640.00 dn 5.80 Jan 648.00 dn 5.40 Spread trade prices are in Canadian dollars and the volume represents the number of spreads: Contract Spread Volume May/Jul 11.00 under to 11.90 under 14,795 May/Nov 25.90 under to 28.00 under 1,962 May/Jan 35.40 under 1 Jul/Nov 13.80 under to 16.60 under 9,211 Jul/Jan 23.20 under 2 Nov/Jan 7.20 under to 8.00 under 613 Nov/Mar 11.00 under 1 Jan/Mar 3.30 under 1
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
04-16-24 1615ET