Canola Contracts Extend Downtrend Amid Easing Middle East Tensions

ICE canola contracts continued their downtrend on Tuesday, following a decline below nearby chart support on Monday. The move was influenced by easing tensions in the Middle East, which kept crude oil prices under pressure and weighed on world vegetable oil markets.

The Chicago soyoil market, as well as European rapeseed and Malaysian palm oil, were also lower on Tuesday, contributing to the softer tone in canola. The November contract fell $5.90 to $785.30 per tonne at midday, with a brief test of chart support at the 20-day moving average of $783.50.

However, heat warnings across much of the southern Canadian Prairies provided some support for futures prices. An estimated 39,900 canola contracts traded as of 10:44 CDT on Tuesday.