ICE canola futures' fall cushioned by demand, loonie
All figures in Canadian dollars unless noted
WINNIPEG, Manitoba, Dec 18 (Reuters) -ICE canola futures were sucked lower by a sharp drop in U.S. soybean and soyoil futures, but firm demand and a weaker Canadian dollar helped to limit declines and prices remained relatively firm compared with soyoil.
• Most-traded March canola RSH5 settled down $8.20 or about 1.36% at $594.30 per metric ton.
• January RSF5 settled down $6.30 at $587.70. May RSK5 now has more open interest than the January contract. Contract spreads are narrow and have little premium for deferred months, revealing robust cash market demand, traders said.
* Despite the price on Wednesday, RBC Dominion Securities trader Tony Tryhuk said canola's relative strength was striking. Farmers and commercial sellers have backed away from the market, expecting price recovery, and bargain hunters are picking up canola at present prices.
* "The funds can sell it and that's great, but you're not going to see any other participants on the sell side," said Tryhuk. "The demand is something the Canadian farmer is willing to wait to see emerge before they're going to sell it. They're not chasing it down."
• Chicago Board of Trade soyoil futures BOv1 fell 1.77% to below 40 cents per pound as soybeans Sv1 fell 2.56% during the session to close at $9.51 3/4 for the January contract. Good growing conditions for South American crops were a factor in the souring price outlook.
• The Canadian dollar CAD= fell to its lowest level since the beginning of the pandemic in 2020, lending support to loonie-denominated ICE canola futures.
Reporting by Ed White in Winnipeg
Editing by Matthew Lewis
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
