By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 24 (MarketsFarm) – The ICE Futures canola market was weaker on Thursday, in thin trade with markets in the United States closed for Thanksgiving.
Bearish technical signals contributed to the declines in canola, as the chart trends remain pointed lower for the time being.
However, canola is thought to be looking oversold as it nears the bottom edge of its months-long sideways range. Gains in European rapeseed and Malaysian palm oil futures were also supportive.
About 16,525 canola contracts traded on Thursday, which compares with Wednesday when 28,756 contracts changed hands. Spreading accounted for 9,644 of the contracts traded.
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SOYBEAN futures at the Chicago Board of Trade were stronger ahead of the holiday on Wednesday, underpinned by solid export demand. Weekly export sales data will be released Friday and could provide some direction when activity resumes in the market.
Traders will also continue to keep an eye on South American production prospects. Nearby weather conditions look relatively favourable for soybean crops in Brazil, although the forecasts have turned hotter and drier once again for Argentina.
CORN was higher on Wednesday, but recent weakness in crude oil could weigh on the ethanol-linked market going forward.
On the supportive side, Mexico is reportedly considering relaxing its restrictions on genetically modified corn.
WHEAT was higher on Wednesday but is still thought to be rangebound overall.
The ongoing conflict in Ukraine remains at the forefront of the wheat market, as the country is usually a major wheat exporter.
Drought conditions in Argentina are cutting into production prospects there, while excessive moisture has hurt the crop in Australia.
