By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, May 3 (CNS Canada) – ICE Futures Canada canola contracts were weaker at midday Thursday in light trade.
Losses in the Chicago Board of Trade soy complex accounted for much of the spillover selling pressure in canola, with bearish technical signals also weighing on values.
“The bias is to the downside as the soybean complex continues to drift lower,” said a broker. He added that fund traders were still holding a net long position of about 20,000 to 25,000 contracts, but could start liquidating those positions as prices moved below the 50-day moving average.
A lack of significant farmer selling provided underlying support, as farmers remain busy with spring seeding and other field work.
The Canadian dollar was slightly weaker at midday.
About 5,400 canola contracts had traded as of 10:59 CDT.
