Glacier FarmMedia — ICE canola futures fell below nearby chart support on Thursday, as speculative profit-taking and spillover from losses in the Chicago soy complex weighed on values.
The January canola contract was under its 20- and 50-day moving averages, hitting its lowest level in over a week which was bearish from a chart standpoint. The ongoing lack of significant movement on trade talks with China also continued to overhang the market.
Weakness in the Canadian dollar, trading at its lowest levels in seven months relative to its United States counterpart, provided some support.
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ICE canola falling at midday Thursday
Glacier FarmMedia — The ICE Futures canola market was weaker at midday Thursday, continuing its week-long pattern of moving up…
There were 39,330 contracts traded on Thursday, up from Wednesday when 33,795 contracts changed hands. Spreading accounted for 25,106 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday, as optimism over Chinese business waned.
While China reportedly agreed to buy 12 million tonnes of soybeans from the United States before the end of the year, actual business has been limited as Brazilian-sourced supplies remain the cheaper option.
China has said it will suspend retaliatory tariffs on U.S. imports, but soybeans still face 13 per cent duties going into China.
CORN was caught up in the broad selling pressure, falling in sympathy with soybeans and corn.
The U.S. Department of Agriculture will release delayed monthly supply/demand data next week Friday after skipping the October report due to the ongoing government shutdown.
WHEAT futures were mostly lower, with only spring wheat seeing some modest strength as the spreads between the contracts readjusted.
While China reportedly bought at least two cargoes of U.S. wheat, the actual volumes were below earlier rumours of much larger sales.
Ample world wheat supplies remained another bearish influence overhanging the market.
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