Canola futures closed lower Wednesday despite strength in crude oil and Chicago soybeans, as weakness in other vegetable oil markets and better moisture conditions weighed.
Recent rainfall across much of Western Canada caused significant flooding in some areas but it has also improved soil moisture and supported early crop development. Losses in Chicago soybean oil were negative for canola as well. On the other side, higher crude oil helped limit the decline by supporting biodiesel-related demand for vegetable oils. Oil rebounded from a 3½-month low on technical buying and a larger-than-expected drop in U.S. crude inventories.
July canola lost $9.90 to $739.80, and November fell $7.80 to $747.40.
