The canola market remained pointed sharply lower on Thursday, finding itself caught up in a broad speculative selloff.
Mounting concerns over a recession, as many countries raise interest rates to counter rising inflation, had speculators bailing out of many markets with losses in crude oil contributing to the declines in the agricultural futures – including canola. European rapeseed and Chicago soyoil futures were also down sharply on the day.
The most-active November canola contract fell below its 200-day moving average, which was bearish from a chart standpoint. However, most major technical indicators are signaling an oversold market.
Scale-down commercial demand was also thought to be coming forward as prices fall.
July canola plummeted $71.70 to $880.20, November dropped $67.40 to $844.70 and January lost $67.50 to $850.50.
Source: DePutter Publishing Ltd.
Information contained herein is believed to be accurate but is not guaranteed by the parties providing it. Syngenta, DePutter Publishing Ltd. and their information sources assume no responsibility or liability for any action taken as a result of any information or advice contained in these reports, and any action taken is solely at the liability and responsibility of the user.