Canola futures followed the Chicago soy complex to the downside on Thursday in the wake of improved weather for the Argentina soybean crop.
Soybeans fell heavily on the day, dragging soyoil and soymeal lower, after rain fell in parts of Argentina overnight. Meanwhile, additional showers are expected into the weekend and next week as well, although it remains uncertain how much dry areas will benefit. European rapeseed and palm oil were also lower on the day, adding to the downside in canola.
Demand concerns overhang the market as well, after the biofuel guidance the Biden Administration prepared for the incoming Trump government did not include canola. Trump’s tariff threat remains another wildcard.
March canola fell $23.30 to $606.80, and November was down $13.50 at $616.80.
