Canola futures in Winnipeg fell on profit taking on Thursday after the contract ran into technical resistance.
Also, elevator hedging to cover an uptick in farmer selling was negative for the price. New crop soybeans fell, adding to the weakness.
Questions about the size of the canola crop continue to provide a strong floor under prices. Also supportive was the weak Canadian dollar.
More rain was in the forecast for many Prairie regions on Friday and Saturday.
In Winnipeg July canola fell $5.30 per tonne on Thursday to $426.40 on 3,428 trades.
The previous day’s best basis widened to $10.80 per tonne off the July contract in the par region, according to the Winnipeg ICE Futures daily report.
The 14-day Relative Strength Index for July canola was 81, according to BarChart.com. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates over bought.
New crop November canola fell $8.50 per tonne to $418.40 on 16,499 trades.
The Canadian dollar at noon was 95.86 cents US, almost steady with 95.84 cents at noon the previous trading day. The U.S. dollar at noon was $1.0432.
Winnipeg barley was untraded. July was $155. October was $150.40. December was $150.40.
Chicago July soybeans fell 2.5 cents to $9.555 US per bushel and new-crop November fell 11.5 cents to $9.12.
July oats closed down 0.5 cents to $2.745 per bu. December oats fell 0.5 cents to $2.765 per bu.
In New York, crude oil for July delivery rose 16 cents to $76.51 per barrel.
