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Canola futures fell sharply as markets reacted to the escalating global trade war triggered by US tariffs and the retaliatory measures that followed.
The United States is a key destination for Canadian canola oil, but the sector is now facing 25% tariffs. Broader weakness across the US soybean complex, following China's announcement of countermeasures targeting US agriculture, also weighed on canola prices on Tuesday.
European rapeseed futures and Malaysian palm oil futures also declined.
Chart-based selling was evident, with stop-loss orders triggered during the downturn, while speculators sought to cover some of their large long positions.
Expectations of tighter supplies and the need to ration demand remained supportive factors for the market.
A total of 73,961 contracts were traded on Tuesday, compared with 36,985 contracts traded on Monday.
Spreading activity accounted for 33,616 of the total contracts traded.
Source: The Western Producer