Canola futures were sharply lower on Wednesday, with a number of factors contributing to the declines.
Speculative profit-taking was behind much of the weakness, with that selling building on itself and exaggerating the declines as many traders looked to exit positions at the same time. Losses in Chicago Board of Trade soyoil futures and strength in the Canadian dollar combined to cut into crush margins, adding to the softer tone.
Much needed rains in parts of Western Canada were also bearish, although drought concerns remained supportive overall, with the moisture at this stage unlikely to improve the yield outlook.
November canola dropped $29.20 to $879.90, January fell $24.30 to $867.10 and March lost $22 to $852.
Source: DePutter Publishing Ltd.
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