WINNIPEG – The ICE Futures canola market was steady to lower on Tuesday following a sharp decline in crude oil.
Crude oil fell by US$2 per barrel on Tuesday morning due to weakened demand. In turn, European rapeseed and Malaysian palm oil were also down with the latter resuming trading after a holiday.
The Canadian dollar lost more than four-tenths of a United States cent compared to Monday’s close, giving canola prices some support.
One analyst said that weakness in both corn and wheat is also putting pressure on canola prices.
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“China cancelled purchases of (U.S.) corn this week. The corn market has really been in a dive, along with wheat. So it’s affected the ethanol, it’s affected the biodiesel,” the analyst said. “If the loonie was steady today, canola would be down C$10 to C$15 (per tonne).”
Statistics Canada will release its first survey-based seeding intentions report for 2023-24 on Wednesday morning, with the trade anticipating Canadian canola acres to increase to 22 million.
Nearly 16,300 canola contracts were traded as of 10:31 CDT.
Price Change
May 767.70 dn 0.10
Jul 723.30 dn 4.40
Nov 691.20 dn 6.20
Jan 696.20 dn 6.20
