Losses in the Chicago soy complex led canola futures lower on Wednesday.
Soybeans were sharply lower on the day, with soybean oil also falling after a US Congress funding bill on Tuesday included a provision that will allow year-round sales of gasoline with a higher blend of corn-based ethanol. It is feared that development could shift some demand away from soybean oil-based alternatives like biodiesel. European rapeseed and Malaysian palm oil futures were also lower on the day, further pressuring canola.
When the headlines seem completely negative, then a market is very close to the point of maximum bearishness and prices stop falling. Canola might be getting closer to that point.
January fell $6.30 to $587.70, and November dropped $10.90 to $578.80.
