Canola contracts on the ICE Futures Canada platform were weaker at 10:40 CDT on Tuesday, on ideas the market was overbought.
“Canola was due for a correction. It got trapped way too high after Friday’s close,” said a Winnipeg-based trader.
The Canadian dollar was higher relative to its US counterpart which made canola less attractive to international buyers.
Speculative selling was also a factor, according to a report.
Dry parts of Western Canada received rain over the past few days which was bearish.
Some US farmers are switching out corn acres in favour of soybeans which undermined prices.
Soyoil was also weaker.
However, US soybeans and crude oil were both stronger which limited the losses.
Canola has ended at the highs for much of the last week which could repeat itself today, an analyst said.
About 11,500 canola contracts had traded as of 10:40 CDT.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CDT:
