The canola market continued its speculative selloff on Wednesday, dropping sharply lower as speculators bailed out of long positions.
In addition to the bearish technical signals, losses in outside vegetable oil markets contributed to the declines in canola, with Chicago soyoil, European rapeseed and Malaysian palm oil all falling lower. A lack of significant weather concerns across the Prairies added to the bearish sentiment, according to participants. Seeding has all but wrapped up, with recent rains helping alleviate any dryness issues for the time being.
End user demand provided some support underneath the market.
July canola tumbled $50.20 to $951.90, November lost $41.80 to $912.10 and January was down $42.40 to $918.
Source: DePutter Publishing Ltd.
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