By Jade Markus, Commodity News Service Canada
WINNIPEG, May 18 – ICE Canada canola contracts were weaker at midday on Thursday.
The market was feeling spill-over pressure from sharp losses in the Chicago Board of Trade soybean market.
Though the commodity was weaker, canola was lagging soybeans to the downside.
“The canola market will always hang back to see if the US markets are going to rebound, and they are rebounding a little bit, but they’re still pretty weak,” said one Winnipeg trader.
He added that there is a certain amount of speculation and uncertainty around the sell-off, but noted that fund selling was likely a feature.
“It certainly shows you that this market is vulnerable,” he said.
Forecasts for favourable seeding conditions in Western Canada could further pressure canola in coming sessions.
About 9,764 contracts had traded as of 10:30 a.m. CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric tonne at 10:30 a.m. CDT:
