Canola Weaker, but Off Lows

Canola futures ended weaker at Thursday's close, but well off its session lows as investors reacted to a relatively neutral monthly supply/demand report from the USDA.

The report included only minor adjustments to the global numbers, with the US balance sheet left unchanged on the month. Soyoil futures finished lower following the neutral report, while soybeans and meal both posted gains.

Speculative profit-taking contributed to the declines in canola, although the underlying fundamentals of tight supplies remained supportive on the other side. A weaker tone in the Canadian dollar also helped temper the losses.

The most active January contract dipped below the psychological C$1,000/tonne mark at one point during the session but managed to settle well above that level.

January canola fell $2.70 to $1,008, March was down $1.10 to $981.70 and May lost $2 to $946.60.