WINNIPEG, (Manitoba): ICE canola futures plunged on Tuesday to a one-month low, dragged lower by a sell-off of crude and soyoil on fears about vaccine efficacy.
The head of drugmaker Moderna Inc said COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been against the Delta variant, causing oil prices to tumble.
Canola and soyoil prices are linked to crude through their use in biofuels.
Canola’s price crash was inevitable anyway, with crushers well-covered into spring, a broker said. Cash prices have begun to weaken in some parts of western Canada, he said.
January canola lost $40.30 or 3.9% to $987.10 per tonne, touching the lowest price for a most-active contract since Oct. 28.
January-March canola spread traded 4,022 times.