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Canola Tumbles Hard

Canola futures were sharply lower on Thursday in the heaviest trading session in a number of weeks. There was significant weakness in the old-crop months, with new-crop positions seeing more modest declines.

Oilseed markets in general were pressured by a much better forecast for South America, where much-needed rain, along with cool temperatures, is expected over the weekend. Additional pressure came from much smaller losses in Malaysian palm oil, while a step back in global crude oil prices weighed on edible oils.

The Canadian dollar was slightly higher at the noon hour, which put more pressure on canola.

March canola fell $29.90 to $984.80, May was down $20.50 at $971.30 and new-crop November lost $4.20 to $795.80.

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