ICE Canola Edges Lower On Bearish Technicals

After the March canola contract closed below the key psychological support level of C$400 per metric ton on Friday, the bearish technical signals encouraged some more speculative selling on Monday, according to an analyst.

Continued firmness in the Canadian dollar added to the weaker tone in canola. Milder temperatures, combined with the need to generate some cash flow, also encouraged some farmer deliveries over the weekend, which were being priced into the market, according to traders.

Expectations for a large South American soybean crop also continue to overhang the canola market.

CBOT soybeans were slightly firmer in overnight electronic trade, which could provide some spillover support for canola if the soy complex remains firm through the North American session, said an analyst. However, trade could be subdued in the US agricultural markets, and in turn canola, as participants square their positions ahead of the USDA’s updated supply/demand tables due for release on Tuesday.

About 860 canola contracts had traded as of 8:44 CST.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:44 CST: