ICE Canada Review: Farmer Selling Sends Canola Down

Furthering losses came from the Australian crop report, which projected that despite excess precipitation falling in the country during the growing season, the nation will still have its largest harvest since the 2003/04 crop year. As well, canola production is expected to be at 2.1 million tons, an 11 per cent increase from one year ago.

Some speculative fund liquidation was still in the market Tuesday, which added to the bearish tone, brokers said.

Weakness in European rapeseed, Malaysian palmoil ,and CBOT soybeans put additional pressure on values, market watchers said.

Losses were restricted by demand from the crushing sector, although participants have been seeing less return, thanks to a drop in soyoil prices, analysts said.

The Canadian dollar had retreated from highs earlier in the session, which helped ease losses in the market, experts said.

About 36,596 contracts were traded on Tuesday, which compares with Monday, when an estimated 34,156 contracts changed hands. Spreading accounted for about 24,402 of the contracts traded.

Settlement prices are in Canadian dollars per metric ton.