ICE canola drops with soy complex

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was weaker at midday Tuesday, retreating from earlier gains as losses in the Chicago soy complex spilled over to weigh on values.

Soybeans hit fresh contract lows while soyoil fell to its softest levels in three months. European rapeseed and Malaysian palm oil were also weaker on the day.

Speculative selling was a feature in canola, as values broke below nearby chart support.

However, scale-down demand from both exporters and domestic crushers underpinned the canola market. Weakness in the Canadian dollar was also supportive. The currency fell below 70 U.S. cents for the first time since the height of the pandemic in 2020.

An estimated 43,400 canola contracts traded as of 10:41 CST.

Prices in Canadian dollars per metric tonne at 10:41 CST:

Canola            Jan   593.20    dn  7.90

Mar   602.10    dn  8.00

May   609.10    dn  8.80

Jul   611.90    dn  8.50