Winnipeg Commodity Exchange canola futures closed lower on Thursday on fund and speculative selling amid a weak technical market before the harvest heads into full swing, traders said.
Light hedging and commission house and commercial selling added to the session's bearish sentiment while commercial and exporter buying limited losses, traders said.
Funds sold up to 1,500 lots of the November contract, they said. WCE November canola settled $1.10 per tonne lower at $289.30, continuing its downward trend and closing well below the 40-day moving average at $299.80.
January ended down $1.20 at $298.20 and March was down $3.90 at $303.30.
The November/January spread traded 174 times at a carry of $8.70 and $8.90. Canola futures volume was estimated at 8,171 contracts, up significantly from 4,815 lots on Wednesday. At the Chicago Board of Trade, new-crop November soybeans closed down 1/2 US cent at $5.64-1/2 per bushel, weighed down by a tumble in CBOT wheat and nearly ideal US weather in August. September soyaoil ended down 0.29 cent at 24.86 US cents per lb.
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