China raised the level of reserves that banks must hold for the second time this year in a bid to curb inflation.
The news pressured most commodities lower Friday, including canola futures. Investors worry that the action could slow China’s growth and demand for imports.
Commercial hedging was also a key feature pressuring canola lower.
Friday’s decline wiped out most of the week’s gains. The March contract rose 0.2 percent on the week.
Futures markets will be closed Monday.
China has allowed more crushers to take blackleg-free canola from Canada, but the move is little cause for cheer because the disease is found in virtually all canola. Only two Chinese crushers can take blackleg-contaminated canola.
March canola fell $4.60 to close at $379.70 per tonne on 12,100 trades.
May fell $4.30 to $386.20 on 6,597 trades. New crop November fell $5.90 to $397 per tonne on 1,218 trades.
The Canadian dollar at noon Friday was 94.96 cents US, down from 95.03 cents at noon the previous trading day. The U.S. dollar at noon was $1.0531 Cdn.
The Winnipeg March barley contract fell $4.50 to $143.50 per tonne with 203 trades. May fell $3 to $152 on 10 trades.
Soybeans rose on strong cash prices, slow farmer selling and talk of soymeal exports to South America.
March soybeans rose two cents to $9.45 US per bushel. November soybeans rose 6.5 cents to $9.22 per bu.
Light crude oil in New York for March delivery closed at $73.69 per barrel, down $1.59.
The Canadian Oilseed Processors Association reported members crushed 86,483 tonnes in the week to Feb. 10, down 0.8 percent from the week before.
That brings the total to date to 2.098 million tonnes.
The COPA crush jumped significantly higher in recent weeks, but it was not because crushers have increased volume. Numbers from Viterra’s plant in Ste Agathe, Man., have recently been included.
