By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, May 11 (CNS Canada) – ICE Futures Canada canola contracts were weaker at midday Thursday, with fund selling a feature as bearish technical signals had speculators liquidating some of their long positions.
“It’s pretty overbought,” said a broker pointing to the selling pressure in the July contract. He added that light hedges were also coming forward on the new crop months.
A lack of aggressive buying interest was another feature in the canola market, with any bids coming in under the market.
While fund profit-taking was a feature, support was still holding to the downside. The slow pace of spring seeding across much of Western Canada was also underpinning the futures, according to the broker.
The Chicago Board of Trade soy complex was mixed at midday, with losses in soybeans but a firmer tone in soyoil.
About 12,000 canola contracts had traded as of 10:46 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
