ICE canola futures fall to one-month lows as soyoil sinks
All figures in Canadian dollars unless noted
WINNIPEG, Nov 20 (Reuters) -ICE canola futures fell to the lowest point in a month on Wednesday, sucked lower by slumping soyoil and falling palm, but helped by a weaker loonie.
• January canola RSF5 settled down $12.70 at $617.10 per metric ton, or about 2%, with all contracts out to November also down similar amounts.
• The actively traded January contract breached technical chart support at its 50- and 100-day moving averages and touched its lowest since Oct. 17 before closing near its session low.
• Chicago Board of Trade soybean futures Sv1 fell to two-week lows and soyoil futures BOv1 fell about 3% in a continuation of multiday weakness. Good weather in South America favors soybean production, while North American demand for biofuels is in question following the U.S. election victory of Donald Trump, whose administration picks contain some biofuel skeptics.
• Euronext August rapeseed futures COMG5 fell 1.7% and Malaysian palm oil futures FCPOc3 fell 2% on export weakness and the knock-on effect of dropping Chicago soyoil. POI/
• Canola traders said ICE canola is relatively undervalued compared to European rapeseed values and the pace of disappearance, but on big down days like Wednesday the bigger vegoils impose a tight connection canola can't independently break.
• The Canadian dollar CAD= fell 0.3% Wednesday after two days of gains, offering Canadian canola futures some support. CAD/
Reporting by Ed White; editing by Jonathan Oatis
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