By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 23 (MarketsFarm) – The ICE Futures canola market remained pointed sharply lower on Thursday, finding itself caught up in a broad speculative selloff.
Mounting concerns over a recession, as many countries raise interest rates to counter rising inflation, had speculators bailing out of many markets with losses in crude oil contributing to the declines in the agricultural futures – including canola.
European rapeseed and Chicago soyoil futures were also down sharply on the day.
The most-active November canola contract fell below its 200-day moving average, which was bearish from a chart standpoint. However, most major technical indicators are signaling an oversold market.
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Scale-down commercial demand was also thought to be coming forward as prices fall.
About 47,580 canola contracts traded on Thursday, which compares with Wednesday when 32,350 contracts changed hands. Spreading accounted for 14,410 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were sharply lower on Thursday, caught up in broad selling pressure as global macro-economic worries weighed on the grains and oilseeds.
Some technical stops were likely hit on the way down in soybeans, exaggerating the move.
Relatively favourable Midwestern growing conditions added to the declines, with no immediate weather worries in the forecasts.
A recent strike by truckers in Argentina caused some delays in the country, although activity was reportedly back to normal by Thursday.
CORN was down sharply as well, with speculative selling the feature.
Forecasts calling for some welcome rains across the Midwest over the next two weeks added to the weakness in corn
Weekly export sales data is delayed until Friday.
WHEAT was down in sympathy with most everything else, with strength in the U.S. dollar index another bearish influence.
The U.S. wheat harvest is progressing northwards, although yields have been down on the year due to the hot growing season.
The uncertain situation in Ukraine remained a feature in the background, with reports of another Russian strike on a Ukrainian export facility countered by ongoing efforts towards opening an export corridor out of the embattled country.
