New-crop canola prices on ICE Futures seem to be destined to remain well below $700 per tonne.
That’s according to analyst Errol Anderson of ProMarket Communications in Calgary.
He says the chances of canola pushing higher requires fresh bullish news.
Otherwise, Anderson says, the November contract could fall back to as low as $620/tonne, although the current support level is at $650.
He says technically, we are oversold, adding that the ‘new Cold War’ between the U.S. and China isn’t helping any of the markets.
China has been cutting its soymeal purchases, switching to feed wheat as it’s cheaper.
Anderson says in turn, that’s seen soymeal prices on the Chicago Board of Trade take a hard hit.