WINNIPEG, Manitoba--The ICE Futures canola market dropped sharply as losses in the Chicago soy complex and bearish technical signals weighed on values.
Short-term momentum indicators in the canola market had turned overbought, likely signaling an end to the recent uptrend in canola, an analyst said Thursday. In addition, the nearby March contract briefly traded above its 20-day moving average earlier in the week before running into resistance.
European rapeseed was also weaker. The Malaysian palm oil market was closed for a holiday.
A lack of significant end-user demand was another bearish influence, although some bargain hunting likely came forward on a scale-down basis.
An estimated 34,614 contracts traded on Thursday, which compares with Wednesday when 34,178 contracts traded. Spreading accounted for 21,080 of the contracts traded.
Settlement prices are in Canadian dollars per metric ton.
Contracts Prices Change
Mar 623.10 dn 11.20 May 628.40 dn 10.70 Jul 632.20 dn 10.50 Nov 630.30 dn 10.30
Spread trade prices are in Canadian dollars and the volume represents the number of spreads:
Contracts Prices Volume Mar/May 4.60 under to 5.60 under 6,758 Mar/Jul 8.00 under to 9.40 under 67 Mar/Nov 6.10 under to 7.30 under 268 May/Jul 3.10 under to 3.90 under 2,648 Jul/Nov 3.00 over to 1.80 over 491 Nov/Jan 4.80 under to 5.00 under 7
Source: MarketsFarm, news@marketsfarm.com
(END) Dow Jones Newswires
01-25-24 1553ET
