Winnipeg canola futures spent most of Thursday in positive territory, but closed lower when grain companies sold hedges.
The drop came despite a lower loonie and rising soybean prices.
Trade problems with China over blackleg and canola meal trade issues with the United States over salmonella hung over the market.
January settled at $403.80 per tonne, down 60 cents on a volume of 12,314 contracts.
March fell 30 cents to close at $410.70 per tonne on a volume of 3,637 contracts.
The Bank of Canada at noon said the Canadian dollar was worth 94 cents US, down from 95.24 cents the day before. The U.S. dollar was worth $1.0638 Cdn.
Winnipeg January and March barley contracts were steady at $157.50 per tonne with no trade.
The Chicago soybean January contract ended 12 cents higher at $10.39 US per bushel, lifted by strong exports of seed and meal. Most of South America’s soy supply is sold, so the U.S. is virtually the only exporter in the market now.
U.S. corn and wheat futures fell.
Vegetable oil prices were pressured lower by a two percent drop in crude oil prices.
The Buenos Aires Grain Exchange forecast Argentina’s new crop soy area at 46.95 million acres and said seeding was about 44 percent complete. Key regions have been dry, causing analytic firm Oil World to reduce its forecast of production to 48 million tonnes from early projections of 52 million. However, recent rain and forecasts of more coming in the next few days could improve the production outlook.
Last year, drought slashed production to 32 million tonnes.
The Canadian Wheat Board announced new delivery contract calls for CW red spring, CPS red and CW extra strong red wheat.
The CWB also said Series A acceptance level is 80 percent for CWRS, 40 percent for CWAD and 100 percent for CPSR, CPSW, CWES, CWSWS, CWHWS and IPCP programs.
