Canola futures posted modest losses on Tuesday, pressured by weakness in energy markets.
Losses in crude oil weighed on the broader oilseed complex by reducing support from biofuel-linked demand, while Chicago soybeans remained near four-month lows amid favourable U.S. crop weather and the absence of fresh Chinese buying. Chicago soybean oil was higher, but European rapeseed and palm oil were lower.
The decline came even as recent flooding in western Manitoba continued to raise concerns about some unseeded or damaged canola acres, after earlier heavy rains raised the same worries in parts of Alberta. However, traders appeared more focused on the broader bearish tone in energy.
Crude oil fell sharply on Tuesday, posting a 7-week low, as the ceasefire between Israel and Iran appears to be holding. But crude prices recovered from their lows after President Trump said the U.S. would retaliate after Iran shot down an American military helicopter.
July and November canola each slipped $1.20 to end at $760.10, and $767.90, respectively.
