Canola futures were weaker on Tuesday, dropping below psychological support as speculative selling weighed on values.
The nearby March contract fell below C$800/tonne, which was bearish from a chart standpoint. Concerns that Australia’s large canola crop will cut into some Canadian export demand added to the softer tone, according to participants.
Losses in Chicago soyoil also weighed on values, although soybeans held closer to unchanged and European rapeseed was higher on the day. The Malaysian palm oil market was untraded due to the Lunar New Year holiday.
Domestic crush margins remain strong and scale-down end user demand provided some support.
March canola lost $10 to $796.70, May was down $10.20 to $796.20, July fell $10.70 to $797.60, and new-crop November dropped $9.60 to $782.60.