By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 23 – (MarketsFarm) – ICE Futures canola contracts were weaker at midday Thursday, as the speculative selloff continued for another day. A lack of significant weather concerns across the Prairies added to the bearish sentiment.
“The selling pressure is huge,” said an analyst on the broad weakness in most agricultural commodities. European rapeseed and Chicago soyoil futures were also down sharply on the day, while Malaysian palm oil saw a modest correction.
The most-active November canola contract dipped below its 200-day moving average, which was bearish from a chart standpoint. However, most major technical indicators are signaling an oversold market.
Scale-down commercial demand was also thought to be coming forward as prices fall.
About 32,351 canola contracts traded as of 10:34 CDT.
Prices in Canadian dollars per metric tonne at 10:34 CDT:
Canola Jul 951.90 dn 50.20
Nov 912.10 dn 41.80
Jan 918.00 dn 42.40
Mar 922.00 dn 43.60
