Canola futures closed weaker on Monday, as concerns over the Chinese economy weighed on global financial and commodity markets.
A slowdown in China’s inflation rate saw the country’s central bank unexpectedly cut interest rates on Monday, triggering losses that spilled into canola. Crude oil, Malaysian palm oil, Chicago soyoil, and European rapeseed futures were all weaker.
Relatively favourable Midwestern weather forecasts contributed to the declines in the North American grains and oilseeds, but hot temperatures and only minimal precipitation expected for the Canadian Prairies provided some underlying support for canola. Weakness in the Canadian dollar also helped temper the declines in canola.
November canola dropped $26.60 to $836.40, January lost $25.60 to $845.40, and March was down $24.60 at $851.90.
Source: DePutter Publishing Ltd.
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