By Jade Markus, Commodity News Service Canada
WINNIPEG, March 10 – ICE Canada canola contracts declined in low volume trade at midday on Friday.
Bearish pressure from the US soy complex was one source of losses.
Chicago Board of Trade soybeans, soy meal and soy oil dropped Friday, following bearish supply and demand data from the United States Department of Agriculture, and as fund buying ran dry.
“I think the funds are getting a little tired of buying it [soybeans] and I wouldn’t be surprised if we saw a massive selloff as they all decided to get out,” said one Winnipeg-based trader.
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Strength in the Canadian dollar against its US counterpart was another source of declines.
The commodity-linked loonie advanced with crude oil futures, which is bearish for canola as it makes the commodity less appealing to international buyers.
But overall the market was low volume and values could fall further by close.
“We’re just barely scraping 3,000, market’s dead,” he said. “We should be a little lower I think.”
About 3,015 contracts had traded as of 10:43 a.m. CST.
Milling wheat, durum and barley futures were all untraded and unchanged.
