Profit taking and liquidation of the soon-to-expire January contract sent canola futures lower on Wednesday.
With the holidays fast approaching, traders decided to take some money off the table with the market rallying its highest since 2013. Markets will close early at noon Central Time on Thursday for Christmas Eve and will reopen again on Dec. 29. Strength in the Canadian dollar added to the pressure on canola.
A trader noted that the cash market remains strong with canola at C$14/bu at several locations across the Prairies.
Statistics Canada today reported the November canola crush at 917,992 tonnes, down from 931,060 tonnes in October. The federal agency also reported total grain deliveries in November of nearly 5.19 million tonnes, of which about 1.87 million tonnes was canola.
January tumbled $14.80 to $623.90, March was down $7.30 at $620.80 and May lost $2.40 to $610.10.
Source: DePutter Publishing Ltd.
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