ICE Canola Down In Corrective Pull-Back

After rallying sharply higher earlier in the week canola finally ran into some resistance on Thursday. Traders said follow-through technical selling was weighing on prices, while the recent gains were also causing end users to back away slightly.

An analyst said canola futures neared some key technical resistance levels on Thursday, and he was uncertain prices would need to move much higher in order to ration demand.

However, concerns that excessive moisture would leave a large number of acres unseeded and cause crop damage across western Canada remained a supportive price influence for canola.

Reluctant farmer selling also underpinned the canola market given the uncertain crop conditions.

Calls for a steady to higher start in CBOT soybeans, along with overnight gains in Malaysian palm oil futures, were also helping limit the declines in canola.

The Canadian dollar was slightly weaker early in the day, providing some further support.

About 1,900 canola contracts had traded as of 8:28 CDT.

Western barley futures were untraded and unchanged early in the day.

Prices in Canadian dollars per metric ton at 8:28 CDT: