WINNIPEG, Manitoba--The ICE Futures canola market was sharply lower on Monday, falling in sympathy with crude oil as a pause in attacks between the United States and Iran weighed heavily on energy markets.
The Chicago soy complex, European rapeseed and Malaysian palm oil were all lower.
A move below C$800 per tonne in the November contract was bearish from a technical standpoint, encouraging additional speculative profit-taking amid ideas the market had become overdone to the upside.
November canola was down C$33.70 per tonne at the close, to settle at C$791.20 per tonne.
However, the underlying fundamentals remained supportive for canola, especially with forecasts calling for hot temperatures in many parts of Western Canada over the next week. An analyst pointed to reports of heat blasting in canola fields in the southern Prairies, while lost acres due to flooding in other areas also remained supportive.
