WINNIPEG, (Manitoba): ICE canola futures plummeted nearly 4% on Tuesday to a more than two-year low for the most-active contract, weighed down by a broad sell-off of crude, grains and oilseeds over macroeconomic concerns.
Worries about whether the US Congress will pass the US debt ceiling pact drove crude prices down and the selling also hit grains and oilseeds. The “equal-opportunity beating” across commodities leaves canola technically weak and open to further selling, a trader said.
November canola shed $25.80 to settle at $628.10 per tonne. Its low of $625.50 was the weakest most-active price since March 2021 on a continuous chart. US wheat, corn and soybean futures faced further pressure from strong competition for global grain export business and some forecasts for beneficial Midwest rains next month.
July-November canola spread, the most active inter-month spread, traded 6,256 times. Euronext August rapeseed futures also fell. The European Commission increased its monthly forecasts for this year’s European Union soft wheat and rapeseed harvests.