Canola futures posted double-digit losses on Wednesday, pressured by a sharp selloff in global energy markets and weakness in Chicago soybean oil futures.
Crude oil prices tumbled following news of a two-week ceasefire between the United States and Iran. The drop in energy values weighed heavily on vegetable oil markets, including canola, given its strong linkage to renewable diesel demand. Additional pressure came from declines in Chicago soybean oil, although soybeans did manage to rebound from earlier declines to finish slightly higher on the day. Palm oil also gained, but European rapeseed was mainly lower.
May canola fell $14.50 to $704.90, and November lost $12.80 to $714.80.
