ICE Canada canola falls to more than three-year low

23 Dec, 2013

WINNIPEG: ICE Canada canola futures fell to their lowest level in more than three years on Monday, as commercial hedges dragged the nearby contract below key support, triggering technical selling.

Nearby January canola dipped as low as $436 per tonne, the lowest nearby price since August 2010, erasing support around $440. Next technical support level is around $420 - trader.

Weakness in Chicago soybeans, due to concern China may shift soy buying to South America, and strength in the Canadian dollar also weighed on canola.

January canola plunged $7.30, or 1.6 percent, to settle at $436.30 on volume of 7,420 contracts.

Most-active March canola dove $8.00 at $445.70 on volume of 14,311.

January-March spread narrowed to a March premium of $9.40, trading 7,287 times.

Chicago January soybeans fell 10-1/2 U.S. cents at US$13.28-1/2 per bushel.

NYSE Liffe Paris February rapeseed added 0.2 percent.

February Malaysian palm oil gained 1.4 percent.

Canadian dollar was trading at $1.0603 versus the U.S. dollar, or 94.31 U.S. cents, at 12:50 p.m. CST (1850 GMT), up from Friday's close at $1.0648 to the greenback, or 93.91 U.S. cents.

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