WINNIPEG, Manitoba--As the trade turned its attention towards the November contract, canola futures on the Intercontinental Exchange were slightly weaker during the week ended June 24.
The most-traded November contract dipped C$1.80 per ton at C$744.30, remaining below its 20- and 50-day moving averages.
Jerry Klassen of Resilient Commodity Analysis in Winnipeg said lower crude oil prices have pulled down the oilseed as of late, despite a brief correction on June 22 and 23.
Pressure on canola came from comparable oils. West Texas Intermediate lost approximately US$6 per barrel during the week, while July Chicago soyoil lost 2.08 U.S. cents per pound as more oil tankers traversed through the Strait of Hormuz.
"The canola market has been highly correlated with the crude oil futures. We had a little bit of a divorcing earlier in the week and I think it tempered the downside there," Klassen explained.
