ICE Canadian canola futures plunged on Monday as stock markets were pummeled by slumping oil prices and continued fears about the economic hit of the coronavirus outbreak. Canola markets followed the path of the sharp drop in the US soya complex, but were buffered by the falling Canadian dollar, a trader said, adding it appeared that trading was based more on fear and emotion than on fundamentals.
The Canadian dollar tumbled to a near-three year low against its US counterpart on Monday as investors raised bets on further interest rate cuts from the Bank of Canada after oil prices plunged by more than 20%. U.S stock markets were hammered, falling about 5% on Monday as a slump in oil prices and the rapid spread of the coronavirus amplified fears of a global recession. Most-active May canola lost $4.40 to $455.30 per tonne. May-July canola spread traded 4,473 times.
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