CE Futures Canada canola contracts settled at their weakest levels in over a month on Oct. 29, and could be poised for further losses from a chart standpoint.
The most active January contract settled at $471.20 per tonne on Oct. 29, which was below all of the major moving indicators and the weakest level for the contract since September 23.
Psychological support comes in at the $470 per tonne level, but the next major level of support is ten dollars lower at around $459 to $460 per tonne. That level had provided a pivot point at the beginning of September after values had drifted lower through the summer months from the early July highs above $520 per tonne.
The relative strength index, which is seen as an indication of whether or not a contract is oversold or overbought, is still sitting in neutral territory.