CHICAGO: ICE Canada canola futures plunged to a more than 20-month low on Tuesday, their eighth straight session of declines as speculative traders added new bearish bets to their positions. Traders also noted some commercial hedging pressuring the market after farmers booked sales of crops they have been holding in storage bins.
The recent weakness in futures raised concerns that prices would not rebound soon. The benchmark May canola contract fell $10.20 to $757.60 per tonne. The contract has shed 8.2% of its value during the losing streak.
Prices for the May contract bottomed out at $757.00. On a continuous basis, that was the lowest for the most-active canola futures contract since June 28, 2021.
New crop November canola dropped $9.00 to settle at $735.90. The May-July spread traded 7,644 times and the July-November spread traded 3,511 times.
Chicago Board of Trade May soybean futures closed US2-1/2 cents higher at US$14.93-3/4 a bushel. Euronext May rapeseed futures dipped 0.7% on Tuesday.
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