By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, March 17 (CNS Canada) – ICE Futures Canada canola contracts were down at midday Friday, continuing their bearish slide of the past week as speculative selling kept the market under pressure.
“The canola market is still heavy,” said a Winnipeg trader, adding fund traders were liquidating their long positions and moving to the short side.
The nearby May contract fell below the 200-day moving average on Thursday, and most technical indicators are still pointed lower despite ideas that the market is starting to look oversold.
Losses in Chicago Board of Trade soybeans and expectations for large South American crops also weighed on canola values, according to participants.
However, soyoil was firmer on the day, which provided some support.
Improving domestic crush margins and expectations for tightening supplies going forward also helped underpin the market.
About 10,000 canola contracts had traded as of 10:53 CDT, with intermonth spreading a feature.
Milling wheat, durum, and barley futures were all untraded and unchanged.
