WINNIPEG, Manitoba--Intercontinental Exchange (ICE) canola futures dropped back on Thursday, most likely due to profit-taking according to a trader.
Canola prices rallied for several days after they had been in a trading range for a number of weeks. The trader stressed the Canadian oilseed will need to remain expensive when going through the upcoming winter.
There were also sharp downturns in the Chicago soy complex, European rapeseed and Malaysian palm oil. The latter two retreated from recent contract highs.
Agriculture and Agri-Food Canada issued its monthly supply and demand estimates and the trader suggested that exports of 6.5 million tonnes are too high, while domestic use of 7.7 million tonnes is too low. He said AAFC's estimate of almost 12.8 million tonnes of canola produced this year is probably quite close to what came off of the Prairie fields.
Statistics Canada will issues its survey-based production report on Dec. 3.
The trader noted that Australia is set to export a record 4.5 million tonnes of canola this year. However, he said the extra 1.5 million the country is to put on the global market will have little impact on prices.
At mid-afternoon the Canadian dollar was lower with the loonie at 80.78 U.S. cents, compared to Wednesday's close of 81.11.
There were 31,106 contracts traded on Thursday, which compares with Wednesday when 36,030 contracts changed hands.
Spreading accounted for 23,342 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Nov 937.40 dn 11.90
Jan 927.40 dn 17.20
Mar 912.30 dn 15.00
May 886.90 dn 13.00
Spread trade prices are Canadian dollars and the volume represents the number of spreads:
Months Prices Volume
Nov/Jan 10.50 over to 4.70 over 4,095
Nov/Mar 27.60 over to 24.00 over 348
Nov/May 51.50 over to 48.90 over 190
Nov/Jul 82.80 over to 79.80 over 100
Nov/Nov 229.00 over 13
Jan/Mar 18.50 over to 15.00 over 3,682
Jan/May 45.00 over to 41.70 over 7
Jan/Jul 79.00 over to 71.00 over 364
Mar/May 28.90 over to 24.20 over 1,099
Mar/Jul 61.00 over to 55.00 over 154
May/Jul 33.10 over to 29.70 over 1,452
Jul/Nov 148.90 over to 136.5 over 148
Nov/Jan 9.40 over to 8.20 over 17
Jan/Mar 2.60 over 2
Source: Commodity News Service Canada
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(END) Dow Jones Newswires