ICE Close: Soybean Losses Lead Canola Lower

Canola futures ended lower on Thursday, with losses in Chicago soybeans helping to lead the way down.

Soybean futures, along with corn and wheat, lost ground today after the USDA announced its latest aid package for American farmers to offset the impact of the government’s trade battles.

The $16 billion package - which includes $14.5 billion in direct payments to producers - will not be dependent on which crops are planted in 2019, and therefore will not distort current planting decisions, the USDA said. However, producers will receive no payments if they do not plant this year.

On the other hand, dryness across much of Western Canada has been supportive for canola. The dry conditions have greatly helped farmers with seeding this spring, but unless there is rain soon, germination and emergence will suffer.

July canola fell $4 to $441.80, November was down $3.60 at $455 and January lost $3.70 to $460.40.

Source: DePutter Publishing Ltd.

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