ICE Canadian canola futures closed lower on Tuesday in sympathy with declines in allied US soyaoil futures and Malaysian palm oil futures, traders said. January canola settled down $1.20 at $467.50 per tonne and most-active March canola ended down $1.10 at $478.10 per tonne but stayed inside of Monday's trading range.
Both contracts rallied sharply off the day's lows in the closing minutes of trade, paring losses in what appeared to be traders squaring positions at the year's end.
For the year, front-month canola futures fell about 1.2%, their third straight annual decline, at $467.50, easing slightly from the 2018 close of $473.
The March-May canola spread widened on Tuesday to $9.40, premium May, from $9.00 on Monday.
Chicago Board of Trade soyaoil futures closed sharply lower on profit-taking a day after notching life-of-contract highs, and Malaysian palm oil futures slipped following a rally to near three-year highs.
Euronext February rapeseed futures fell 0.24% and Malaysian March palm oil futures fell 2.62%.
A stronger Canadian dollar added to the bearish tone in canola futures, making Canadian products less competitive on the global marketplace. The Canadian currency rose to a 14-month high against its US counterpart as year-end funding pressures that might have boosted the greenback did not occur.
The ICE canola futures market will be closed on Wednesday in observance of New Year's Day, with trade resuming on Thursday.
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