By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, April 20 (CNS Canada) – ICE Futures Canada canola contracts were mixed at midday Friday, although the bias was lower in the most active contracts amid ideas that Thursday’s rally was overdone.
Losses in Chicago Board of Trade soybeans pressured values, as recent activity in canola was making the Canadian oilseed look expensive compared to alternatives.
Concerns over a looming strike at Canadian Pacific Rail were also overhanging the market. While a disruption in rail movement would lead to tightness at the ports, the resulting backlog on the Prairies would be bearish overall for prices, according to a trader.
The Canadian dollar was weaker at midday, which provided some underlying support for the futures.
About 13,000 canola contracts had traded as of 10:50 CDT. The nearby May contract was the only month up on the day, with much of the activity there tied to participants exiting the contract before it expires.
