By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 23 (MarketsFarm) – ICE Futures canola contracts continued their downtrend at midday Wednesday, hitting their weakest levels in nearly two months as bearish technical signals kept speculators on the sell side of the market.
Losses in crude oil added to the weakness in canola, with Chicago soyoil, Malaysian palm oil and European rapeseed futures all down on the day.
Canola is looking oversold from a chart standpoint, but an analyst noted that the momentum in the market remained lower for the time being.
Wide crush margins provided some support, with canola very attractively priced for end users.
Positioning ahead of the Thanksgiving holiday in the United States kept some caution in the market. U.S. markets will be closed Thursday and only open for reduced hours on Friday, while the canola market will trade its usual hours.
About 18,200 canola contracts traded as of 10:50 CST.
Prices in Canadian dollars per metric tonne at 10:50 CST:
Canola Jan 829.20 dn 5.90
Mar 824.20 dn 5.70
May 827.70 dn 6.20
Jul 832.40 dn 6.50
