By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, June 1 (CNS Canada) – ICE Futures Canada canola contracts were lower at midday Thursday, seeing a continuation of the speculative selling that’s weighed on prices all week.
“Someone is deliberately leaning on canola,” said a broker on the bearish tone in the market. He added that a lack of buying interest on the other side contributed to the declines, as end user demand typically sees a seasonal slow-down at this time of year.
A firmer tone in the Canadian dollar and losses in Chicago Board of Trade soyoil were also bearish for canola.
However, tightening old crop supplies and persistent seeding delays in parts of Western Canada remained supportive and helped limit the losses.
The fund selling is also starting to run its course, with the market looking oversold and due for a correction from a chart standpoint, according to the broker.
About 16,000 canola contracts had traded as of 10:47 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
