Sideways canola futures well above chart support

May 2017 canola futures at March 9, 2017, with 20-day simple moving average in purple. (Barchart.com)

CNS Canada — Canola remains stuck in a sideways trading range well above major chart support, despite losses in the U.S. soy complex.

The May soybean contract at the Chicago Board of Trade fell sharply below the 200-day moving average of US$10.20 per bushel on Thursday, as that market had a bearish reaction to the U.S. Department of Agriculture’s monthly supply/demand estimates.

Meanwhile, canola is showing relative strength, with ICE Futures Canada’s May canola contract, at $526.50, still well above its own 200-day moving average of $508.10 per tonne.

The 50- ($521.10) and 100-day ($523.50) moving averages are also below current levels, marking some possible nearby downside targets.

On the other side, the May contract sees solid resistance at the $530 to $540 per tonne area, having failed to see much follow-through buying interest on every previous test around those levels.

— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

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