ICE Close: Canola Drops Sharply with Soy Complex

Canola futures ended sharply lower on Tuesday, falling in sympathy with the Chicago soy complex as the futures had a bearish reaction to updated supply-demand data from the USDA.

Upward revisions to both US and world soybean ending stocks estimates from the USDA weighed heavily on both soybean and canola futures, with bearish chart-signals contributing to the weaker tone in the Canadian oilseed. Overbought price sentiment after last week's rally, together with the firm Canadian dollar, also weighed on prices.

However, tight supplies and the need to ration demand remained supportive on the other side.

November canola closed down $25.80 at $901.10, January dropped $24.90 to $890.80 and March fell $24.60 to $877.90.

Source: DePutter Publishing Ltd.

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