A strengthening Canadian dollar and a mostly weaker Chicago soy complex pressured canola futures to begin the week.
The loonie continued its upward climb today after posting its largest weekly gain since May last week amid the sliding American dollar. A higher Canadian dollar can dent canola export demand by making canola less attractively priced for foreign buyers. Meanwhile, the Bank of Canada will make its next interest rate announcement on Wednesday, with most economists and analysts expecting it to hold its key policy rate at 2.25%.
Crude oil was also lower today, while European rapeseed was mainly weaker. On the other hand, palm oil gained.
The soy complex was weighed down by rising Brazil soybean production estimates and rainfall in portions of Argentina.
March canola dropped $4.60 to $645.70, and November was down $7.60 at $655.
