By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Feb. 8 (CNS Canada) – ICE Canada canola contracts were down Monday morning, testing nearby support in early activity.
Chart-based selling was a feature, as the nearby technical bias remains pointed lower, according to participants. The March contract fell below the psychological C$470 per tonne level last week, and was trading right above major support in the C$464 to C$465 per tonne area Monday morning.
Losses in CBOT soybeans and soy oil contributed to the bearish tone in canola, according to traders. Crude oil was also down in early activity.
Expectations for large South American soybean crops continue to overhang the oilseed markets as well, although there are still enough areas of concern to keep some weather premiums in the futures.
Weakness in the Canadian dollar relative to its US counterpart also provided some underlying support for canola.
About 2,500 canola contracts had traded as of 8:38 CST.
Milling wheat, durum, and barley futures were all untraded.
