Canola Falls Sharply

Canola futures were sharply lower on Wednesday, with a number of factors contributing to the declines.

Speculative profit-taking was behind much of the weakness, with that selling building on itself and exaggerating the declines as many traders looked to exit positions at the same time. Losses in Chicago Board of Trade soyoil futures and strength in the Canadian dollar combined to cut into crush margins, adding to the softer tone.

Much needed rains in parts of Western Canada were also bearish, although drought concerns remained supportive overall, with the moisture at this stage unlikely to improve the yield outlook.

President Trump put the Jones Act on a 60-day suspension in an attempt to smooth out prices spikes. The war with Iran may make for higher fertilizer prices. A Strike at the Greeley, CO JBS plant threatens to make beef on the hoof and under cellophane more expensive.