ICE Canola Weakens On Spec Selling

Speculative chart-based selling was behind much of the weakness, as the failure of the canola market to move above nearby technical resistance levels on Tuesday was seen as a bearish signal, according to an analyst.

A slight recovery in the Canadian dollar, after it weakened sharply on Tuesday, was also weighing on canola, said traders.

Malaysian palm oil futures were lower in overnight activity, putting further pressure on canola. The record large South American soybean crop also remains a bearish price influence on the oilseed markets in general.

Calls for a higher start in the CBOT soy complex could provide some support for canola, according to traders. Generally favourable domestic crush margins were also expected to help underpin the market.

About 2,700 canola contracts had traded as of 9:00 CST.

Western barley futures were holding steady in overnight activity, with 53 contracts traded.

Prices in Canadian dollars per metric ton at 9:00 CST: