Sideways canola futures well above chart support

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

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.

Tagged , , , , ,
COPA Medallion COPA finalist in 2012, 2014 and 2015.
©2018 AGCanada is a production of Glacier FarmMedia Limited Partnership. Any affiliated or third party content is the property of its respective owner and is used with permission.
Please refer to Copyright Page for details.
Click here to view our Website Terms of Use.