ICE Canadian canola futures fell on Tuesday as a strong Canadian dollar kept crushers and exporters from buying and weaker soyabean futures added to the negative tone, traders said. Canola crushing margins well below margins from one month ago and one year ago.
Total volume a thin 17,693 contracts. Open interest totalled 177,506 on Monday, lowest in nearly three weeks. Canola underpinned by seeding delays across Western Canada due to wet conditions. Market failed to match sharp rise in Minneapolis spring wheat futures, which was fuelled by planting concerns in the US Northern Plains and Western Canada.
May canola dropped $3.50 at $570.40 per tonne, on volume of 9,549 contracts. July down $3.50 at $579.30, volume 6,653. New-crop November also off $3.50 to $578.30 on volume of 1,424 lots. May-July spread traded 5,907 times, with July premium ranging from $8.50 to $9.00. Chicago May soyabeans ended down 2-1/4 US cents at US $13.42 per bushel, pressured by news China was cancelling soya orders. May soyaoil up 0.14 cent to 57.53 US cents per lb.
The Canadian dollar was trading at $0.9565 to the US dollar or US $1.0454 as of 1:16 CDT (1816 GMT), up from Monday's close at $0.9642 to the US dollar, or US $1.0371. NYMEX crude oil futures settled up 1 percent at US $108.15 per barrel. Chinese soya buyers cancel, defer cargoes due to negative margins. Coming up: ICE May canola and western barley options expire on Thursday.
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