Commodities
Canola Prices Plummet Under Hedge Fund Pressure
ICE Canola futures declined sharply at mid-session on Tuesday, marking an end to its latest rally.
A trader attributed the losses in canola to pressure from hedge funds, technical resistance, and profit-taking on long positions.
The uncertainty surrounding the size of the upcoming canola harvest also contributed to the decline, with estimates suggesting it will still be a decent-sized crop.
Other factors such as hard declines in Chicago soyoil, losses in soymeal and European rapeseed, put additional pressure on canola prices. In contrast, gains in crude oil, Chicago soybeans, and Malaysian palm oil attempted to stem the decline.