By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 29 (MarketsFarm) – The ICE Futures canola market was weaker on Monday, testing chart support in thin trade as markets in the United States were closed for Memorial Day.
Losses in European rapeseed futures and a firmer tone in the Canadian dollar contributed to the declines in canola. Good seeding progress across the Prairies, with forecasts calling for timely rains in most areas over the next week, also weighed on values.
Bearish technical signals contributed to the declines, although the new crop November contract managed to hold above the lows hit last week.
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Statistics Canada reported that 886,489 tonnes of canola were crushed in the country in April, which was down four per cent from the previous month, but well above the 706,762 tonnes crushed the same month a year ago.
While U.S. markets were closed for Memorial Day, Midwestern weather conditions will likely take centre stage when activity resumes tonight. News that the U.S. government reached a deal to raise its debt ceiling should take some caution out of the markets, although the deal still needs to pass Congress.
About 10,387 canola contracts traded on Monday, which compares with Friday when 22,456 contracts changed hands. Spreading accounted for 6,862 of the contracts traded.
