Canola Futures Plummet Amid Outside Market Weakness

ICE canola futures plummeted on Friday morning, pushing prices to the lower edge of their nearby trading range. The November contract dipped C$8.60 to C$820.00 per tonne in early activity, falling below its 20-day moving average of C$827.60 per tonne.

The losses were partly due to spillover selling pressure from outside markets, where Malaysian palm oil and Chicago soyoil hit two-month and one-month lows, respectively.

However, the Canadian dollar's weakness lent some support to canola, as a softer currency underpins crush margins. Statistics Canada reported that 1.2 million tonnes of canola were crushed in August, down 6.4 per cent from the previous month but up 42.5 per cent from the same period last year.

Canada exported 43,300 tonnes of canola during the week ended September 20, according to the Canadian Grain Commission, with crop year-to-date exports reaching 752,900 tonnes, a 20 per cent increase.