WINNIPEG, (Manitoba): ICE canola futures dipped on Tuesday due to limited export demand, shrugging off surging soybean oil prices.
Crusher demand underpins canola, but its gains should have been stronger given soyoil’s strength and a government report showing lower Canadian canola stockpiles than expected, a trader said. Statistics Canada estimated Canadian canola stocks as of Dec. 31, 2022 at 11.4 million tonnes. The trade expected, on average, 11.7 million tonnes, up from 8.8 million a year earlier.
March canola lost $1 to settle at $832.50 per tonne. March-May canola spread, the most active inter-month spread, traded 4,788 times.
Soybean oil and palm oil rose sharply after top palm oil exporter Indonesia planned to suspend some existing export permits amid rising prices of domestic cooking oil. Euronext May rapeseed futures rose modestly.
Chicago Board of Trade soybean and corn futures fell as traders squared positions ahead of the US government’s key monthly reports on global supply and demand, due on Wednesday.
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