Canola Futures Climb on Vegetable Oil Support Amid Crude Oil Declines
Canola futures on the Intercontinental Exchange (ICE) rose on Monday, boosted by strength in vegetable oils. Chicago soyoil, European rapeseed, and Malaysian palm oil all saw modest gains, though declines in crude oil limited the upward momentum. Crude oil prices dipped slightly following the G7's announcement to release 100 million barrels of oil and fuel products to curb prices. Additionally, Saudi Arabia reduced crude oil prices to Asia to six-year lows.
Alberta’s canola harvest progressed, reaching 31% completion as of September 29. The Canadian dollar weakened slightly against the U.S. dollar, losing less than one-tenth of a cent from Friday’s close. Trading activity for canola contracts was robust, with 86,244 contracts exchanged on Monday, compared to 85,423 on Friday. Spread trades accounted for 59,836 contracts in Monday’s session.
Settlement prices for ICE Canola futures saw gains across various contracts. The November contract settled at 819.40 C$/tonne, up 3.90, while the January contract closed at 832.80 C$/tonne, up 4.10. Other commodities like MGEX Spring Wheat, KC Hard Red Wheat, and Chicago Soft Wheat also saw changes in their settlement prices.
In the spread trade market, various canola contract spreads were active, with notable volumes in the Nov/Jan and Jan/Mar spreads. The Nov/Jan spread ranged from 12.80 under to 13.80 under, with 17,551 contracts traded. The Jan/Mar spread ranged from 6.70 under to 9.10 under, with 8,188 contracts traded.