By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 23 (MarketsFarm) – The ICE Futures canola market was sharply lower in thin trade on Thursday, with the lack of liquidity exaggerating the move.
Markets in the United States were closed Thursday and will only open for reduced hours on Friday.
Wednesday’s close below the 50-day moving average in the January canola contract was bearish from a chart standpoint, encouraging more speculative selling on Thursday. The contract fell below both the psychological C$700 per tonne level and the 20-day moving average at C$699 per tonne.
Losses in crude oil contributed to the selling pressure in canola, with European rapeseed and Malaysian palm oil futures also lower on the day.
An estimated 8,800 canola contracts traded as of 10:22 CST.
Prices in Canadian dollars per metric tonne at 10:22 CST:
Canola Jan 696.20 dn 13.50
Mar 700.70 dn 13.60
May 703.70 dn 14.10
Jul 706.20 dn 14.20
