ICE Close: Soyoil Weakness Undermines Canola

Canola futures ended weaker on Tuesday, with losses in Chicago Board of Trade soyoil behind some of the spillover selling pressure.

News the U.S. would delay imposing 10% tariffs on some Chinese imports contributed to the weakness in canola, according to a trader, as easing tensions between those two countries would likely see more U.S. soybean sales at the expense of vegetable oil business.

Relatively favourable weather across much of Western Canada, despite dryness in some areas and recent cooler temperatures, also weighed on values. Bearish technical signals added to the softer tone, as fund traders continued to add to their large short positions.

November canola fell $3.50 to $448.90, January lost $3.90 to $457.20 and March was down $3.90 at $464.60.

Source: DePutter Publishing Ltd.

Information contained herein is believed to be accurate but is not guaranteed by the parties providing it. Syngenta, DePutter Publishing Ltd. and their information sources assume no responsibility or liability for any action taken as a result of any information or advice contained in these reports, and any action taken is solely at the liability and responsibility of the user.