ICE Canola Drops On Profit-Taking

Malaysian palm oil, European rapeseed, and e-cbot soybeans were all lower in overnight trade, which accounted for some of the selling in canola. The CBOT soy complex is expected to remain pointed lower at the start of the North American session.

Reports of weakness in the European economy were said to be triggering the declines in the commodity markets, encouraging some speculative selling, said traders.

While some farmer hedges were also likely coming forward in canola, producers remain bullish overall and were reluctant to make large sales, according to market participants.

Tightening supplies and the need to make sure enough acres are planted in the spring was keeping the overall outlook in canola pointed higher, according to an analyst. He noted that any downturns were seen as buying opportunities by the exporters and domestic crushers.

The Canadian dollar was weaker Tuesday morning, which helped provide some underlying support for canola.

About 3,000 canola contracts had traded as of 8:38 CST.

Western barley futures were untraded and unchanged Tuesday morning.

Prices in Canadian dollars per metric ton at 8:38 CST: