Soyoil Declines Drag ICE Canola Futures Lower

ICE Canola futures took a hit on Wednesday, following the Chicago soy complex lower. Soyoil led the declines, dropping by 1.81 US cents per pound to close at 70.64 cents. Soybeans and soymeal also saw moderate reductions. European rapeseed fell in tandem with canola, but Malaysian palm oil bucked the trend, rising higher.

The drop in vegetable oils was somewhat tempered by a rebound in crude oil prices, which added stronger increases to its previous spikes. This spillover effect helped ease declines in canola and other oilseeds. Analysts noted that soyoil remaining above 70 cents per pound is beneficial for canola prices.

Despite the losses, the November canola contract remained above major moving averages, a positive sign for traders. Canola crush margins also retreated slightly, with the November positions hovering between C$284.20 to C$291.20 per tonne above futures.