WINNIPEG, Manitoba--Canola futures on the Intercontinental Exchange declined on Wednesday, pressured by lower crude oil prices.
An analyst said the possibilities of crude oil dropping below US$70 per barrel and Chicago soyoil at less than 70 U.S. cents per pound were not supportive for canola. The analyst added that seasonal trends placed additional pressure on the oilseed.
Crude oil lost more than US$2 per barrel as tensions between the United States and Iran continued to ease and traffic on the Strait of Hormuz increased. Chicago soyoil and Malaysian palm oil were down while European rapeseed was mixed.
At mid-afternoon, the Canadian dollar was down less than two-tenths of a U.S. cent compared to Tuesday's close.
There were 53,072 canola contracts traded on Wednesday, compared to Tuesday when 55,273 contracts changed hands. Spreads accounted for 30,828 contracts in today's trade.
