By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, March 23 (CNS Canada) – ICE Canada canola contracts were lower Thursday morning, testing major chart support as bearish technical signals kept speculators on the sell side.
The most active May contract briefly fell below the C$500 per tonne level in early activity, but managed to recover off of those lows. Additional selling could build on itself if the market sees a sustained move below that psychological point, with the next support coming in around the C$490 per tonne area, according to an analyst.
Losses in Chicago Board of Trade soybeans and soyoil amid rising South American production estimates contributed to the softer tone in canola, according to traders.
However, solid end user demand and the need to ration some demand going forward provided some support.
About 5,000 canola contracts had traded as of 8:52 CDT.
Milling wheat, durum, and barley futures were all untraded.
