Canola prices fell Wednesday, pulled into a short-term vortex created by falling palm, rapeseed and soy oil prices.
March ICE Futures Canada canola futures fell $3.90 to $585.90 while November fell $2 to $527.40.
Continuing strength of the Canadian dollar dragged on canola, as did little export seed business and little farm hedging. Trade was slight in the traditionally sparse Christmas to New Year’s week.
Continued buying by crushers helped stabilize canola prices, and continuing worries about the state of crops in parched Argentina and weather-buffeted Australia also put a floor under canola’s overall weakness.
March Chicago soy oil futures fell half a cent to $56.9 cents US per pound, with soybeans falling 11 cents per bushel to $13.76. Corn was flat, closing at $6.23.
Minneapolis hard red spring wheat futures fell a penny to $8.83 per bushel for March and down more than three cents to $8.86 for December.
While the commodities markets were slightly down Wednesday, equity markets were higher in both Canada and the United States, and generally higher in Europe except for London’s FTSE.
Oil prices subsided, but stayed near highs not seen since 2008. The Canadian dollar clung to its embrace of parity with the U.S. dollar.
