ICE Close: Canola Drops to Two-Week Lows

Canola futures fell to their lowest levels in two weeks on Thursday as losses in the Chicago soy complex triggered a round of speculative selling.

Increasing trade tensions between the United States and China accounted for some of the weakness soybeans. Speculators taking profits on recently acquired long positions added to the declines in canola, as the market showed signs of running into resistance from a technical standpoint.

Seeding conditions were variable across the Prairies. The weather remains relatively favourable in most of Manitoba and Saskatchewan, while precipitation in Alberta was causing delays. Saskatchewan released its weekly crop report, pegging seeding progress at 51% complete as of Monday. That was behind last year's pace, but in line with the five-year average.

July canola was down $5.40 at $467.20, November lost $5.20 to $474.10 and January lost $4.90 to $480.60.

Source: DePutter Publishing Ltd.

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