Canola futures closed lower on Tuesday, giving back most of the previous day's sizable gains.
The market came under pressure from broad weakness across the oilseed complex, with Chicago soybeans and soybean oil both moving lower ahead of Wednesday’s USDA supply-demand update. European rapeseed also declined, while continued strength in crude oil provided only limited support. Crude prices were volatile on Tuesday, whipsawing lower and higher on news headlines but eventually settling at a one-week high.
A stronger Canadian dollar added another bearish influence. The loonie climbed to a two-month high against its U.S. counterpart on Tuesday, supported in part by higher crude oil prices. Traders were also booking profits after Monday’s strong advance.
November canola dropped $13.90 to $781, and January was down $13.60 at $791.20.
