ICE Close: Canola Corrects Lower on Profit Taking, Farmer Selling

Canola futures ended weaker on Thursday, backing away from nearby highs as speculators took profits and the recent strength encouraged some farmer selling.

The November contract had hit a fresh six-month high of C$493.70 in early trade, before retreating to end at C$490.10/tonne. In addition to the overbought price sentiment, canola was also pressured by the relatively favourable crop prospects across Western Canada.

However, there were still enough areas of concern to keep some weather premiums in the market. A weaker tone in the Canadian dollar and gains in Chicago Board of Trade soyoil also provided some spillover support for canola.

November canola fell $1.10 to $490.10, January was down $2.30 at $495.50 and March dropped $2.40 to $499.

Source: DePutter Publishing Ltd.

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