By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Sept. 22 – Canola contracts on the ICE Futures Canada platform were weaker at midday Tuesday as losses in the CBOT soy complex, mounting harvest pressure, and bearish technical signals all weighed on values.
US soybeans in the good-to-excellent category unexpectedly improved by two percentage points in the latest weekly USDA data, which was bearish for the oilseed markets, according to an analyst.
Relatively favourable harvest weather across Western Canada, and ideas that farmer hedge pressure will limit the need for end users to bid up the market over the next month, added to the softer tone, according to participants.
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Commodity funds adding to their short positions contributed to the declines, as the charts remain bearish overall, said an analyst. However, support was holding to the downside, and canola was off its session lows at midday.
A weaker tone in the Canadian dollar helped limit the losses as well.
About 8,600 canola contracts had traded as of 10:44 CDT.
Milling wheat, durum, and barley were all untraded.
Prices in Canadian dollars per metric ton at 10:44 CDT:
