Canola futures closed with moderate losses on Thursday, amid solid gains in the Canadian dollar.
Declines in the Chicago soyoil added to the downside in canola.
Strength in the Canadian dollar was attributed to Wednesday’s US Federal Reserve decision to hold its policy rate steady for the third straight time while also suggesting at least three rate cuts in 2024.
In the wake of the Fed’s announcement, the loonie has now hit a four-month high and gained 2 cents against the greenback.
The stronger Canadian dollar makes canola appear less attractively priced to foreign buyers, negatively impacting export demand.
January canola fell $$8.60 to $651.70, March was down $4.40 at $663.90, and new-crop November lost $3.30 to $676.
