ICE canola momentum pointing lower

Glacier FarmMedia — ICE Futures canola contracts fell to fresh nine-month lows on Thursday, lacking any supportive news to slow the slide.

• The “momentum” remains pointed lower in canola, said an analyst, accounting for the general weakness in the market as traders move to the sidelines ahead of the holidays.
• Much of the activity was tied to inter-month spreading, as traders exit the front month ahead of its expiry.
• Losses in the Chicago soy complex weighed on values, with European rapeseed also lower. Malaysian palm oil held closer to unchanged.
• Large supplies and a lack of export demand from China continued to overhang the canola market.
• Scale down domestic crusher demand and end-user bargain hunting provided support. Canola was also looking oversold by some chart measures and due for a correction.
• An estimated 42,900 canola contracts traded as of 10:51 CST.

Prices in Canadian dollars per metric tonne at 10:51 CST:

Canola            Jan   592.20    dn  4.50

                  Mar   603.90    dn  4.60

                  May   615.80    dn  4.70

                  Jul   624.20    dn  5.00

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