By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 11 (MarketsFarm) – ICE Futures canola contracts were weaker at midday Monday, taking some direction from Chicago Board of Trade soybeans.
Bearish technical signals and concerns over declining Chinese demand added to the softer tone in canola, according to participants.
However, support held to the downside amid ideas that canola was looking cheap for end users.
“(Canola) has become quite attractively priced down here,” said a trader. However, he questioned how much upside the market could have given the weakness in soybeans.
“As long as the U.S. markets don’t fall apart too badly, canola is signaling that it’s attracting some end user buying,” the trader added.
About 4,000 canola contracts traded as of 10:42 CDT.
Prices in Canadian dollars per metric tonne at 10:42 CDT:
Price Change
Canola May 455.40 dn 1.90
Jul 464.00 dn 2.10
Nov 476.50 dn 2.90
Jan 483.80 dn 2.20
