By Jade Markus, Commodity News Service Canada
WINNIPEG, MB, September 6, 2016 (CNS Canada) – ICE Canada canola contracts were weaker at midday on Tuesday, losing ground with advances in the Canadian dollar.
The loonie gained against its US counterpart on Tuesday, which is bearish for canola as it makes the commodity less appealing to international buyers.
“That’s certainly hurting us. That’s why we’re underperforming the soybeans, the bean oil, and the bean meal,” said one Winnipeg-based analyst.
Pre-report positioning was also a feature at midday, as Statistics Canada is set to release a stocks report for the period ending July 31 on Wednesday, September 7.
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“That’s been a real battle over the last 12 months, as far as what was the size of last year’s crop, what was the size of the carryout,” the analyst said.
Harvest pressure is adding to canola’s downside.
However, ideas that fund traders may soon move from short to long positions could underpin the market in coming sessions.
“That could get things fired up here if they were able to rally,” the analyst said.
About 9,781 contracts had traded as of 10:19 CDT.
Milling wheat, durum and barley futures were all untraded and unchanged.
