Canola Futures Continue Decline Amid Weak Soy Complex and Dollar

ICE canola futures declined on Wednesday morning, continuing the downward trend from the previous day.

The November contract was down $6.60 at $817.70 per tonne in early activity, with a move below the 20-day moving average encouraging speculative selling.

Losses in the Chicago soy complex contributed to some spillover selling pressure in the Canadian oilseed market, with European rapeseed and Malaysian palm oil also lower on the day.

However, crude oil was posting small gains, which may be a positive sign for canola prices. Additionally, weakness in the Canadian dollar provided support, as it dipped below 71 U.S. cents for the first time since July, underpinning crush margins and making exports more attractive to international buyers.

Warm and dry Prairie weather forecasts should allow farmers to make good harvest progress over the next week, which could potentially boost canola production and prices in the future.