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.
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