Ideas that canola was overbought sparked profit taking Thursday following recent strong gains in the Winnipeg ICE market.Canola fell despite ongoing problems with too much rain.Lack of crusher and export buying also pressured prices, as did lower nearby soybean futures.Germany’s association of farming co-ops estimated the rapeseed crop there at 5.9 million tonnes, down about six percent from last year. Recent rain had improved production prospects there. Last month, the association estimated the crop at 5.8 million tonnes.There was a little activity in the Winnipeg barley market.July canola fell $1.60 per tonne to $428.40 on 7,457 trades.The previous day’s best basis widened to $10 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 89, according to BarChart.com. The rule of thumb is that an RSI of 30 indicates an oversold market and 70 indicates overbought.New crop November canola fell 70 cents to $426.40 per tonne on 16,165 trades.The Canadian dollar at noon was 97.24 cents US, down from 97.69 cents at noon the previous trading day. The U.S. dollar at noon was $1.0284 Cdn. Canadian wholesale sales unexpectedly fell 0.3 percent in April, led by lower vehicle sales. Analysts had expected a 0.3 percent increase.Winnipeg barley July rose $1.50 to $149 on 20 trades. October rose 40 cents to $150.40 on five trades. December rose 40 cents to $150.40.Chicago July soybeans fell 5.75 cents to $9.52 US per bushel; new crop November rose 0.5 cents to $9.25.July oats fell 8.75 cents to $2.6125 per bu. December oats fell 3.5 cents to $2.585 per bu. In New York, crude oil for July delivery fell 88 cents to $76.79 per barrel.
Profit taking lowers canola futures
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