Canola Futures Plummet Under Weight of Speculative Funds

ICE canola futures took a hit on Friday due to profit-taking by speculative funds. These funds currently hold a large long position in canola, and they don't want to be caught with it when the oilseed's harvest is fully underway.

An analyst said that if these funds do get caught holding the canola, steep declines would result. Pressure on canola also came from sharp losses in Chicago soyoil and more modest declines in European rapeseed.

Gains in crude oil, Chicago soybeans, and soymeal, as well as Malaysian palm oil, were not enough to offset these losses. The November canola contract took a big step down towards its 20-day moving average.