Canola keeps falling at midday Wednesday

By Phil Franz-Warkentin, MarketsFarm

WINNIPEG, May 1 (MarketsFarm) – ICE Futures canola contracts were trading at fresh contract lows for the third-straight session at midday Wednesday, as bearish technical signals kept speculators on the sell side.
Losses in the Chicago Board of Trade soy complex accounted for some spillover selling in canola, according to a trader. A lack of significant end-user demand on the other side also weighed on prices, as commercial traders remain content to watch prices fall.
Large old crop supplies and the ongoing trade tensions between Canada and China also weighed on values.

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The Canadian government announced expansions to the Advance Payments Program on Wednesday in an effort to help canola farmers amid the Chinese trade uncertainty. Trade missions to work on diversifying the demand for canola were also announced. However, the government announcements did little to address the root problem.
The Canadian dollar was slightly softer at midday, providing some support for canola. Oversold price sentiment and expectations for reduced acres this spring also helped temper the declines.
About 8,000 canola contracts traded as of 10:55 CDT.

Prices in Canadian dollars per metric tonne at 10:55 CDT:

Price Change
Canola Jul 436.40 dn 4.80
Nov 450.60 dn 4.90
Jan 457.70 dn 4.90
Mar 464.30 dn 4.70