CNS Canada — ICE Futures Canada canola contracts have crashed hard the past few days, losing roughly $40 per tonne since hitting some of their highest levels of the past year the previous week, as speculators bailed out of long positions.
The most active November contract settled at $493.60 per tonne on Tuesday, its weakest close in nearly two months.
The 100-day moving average sits just below that, at $492.70, with a move back under that point possibly triggering additional sales from a technical standpoint.
After that, the November contract hit a session low of $488.10 on Tuesday, while the 200-day moving average is not far off at $485.30.
While canola prices plunged over the past week, the relative strength index, at 33, is still not quite in oversold territory.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.