By Phil Franz-Warkentin, Commodity News Service Canada
September 16, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at midday Tuesday, as losses in CBOT soyoil and an increase in hedge selling weighed on values.
After moving up in sympathy with CBOT soyoil the past two sessions, the US market was seeing a correction on Tuesday and that selling pressure spilled into canola, according to a broker.
He said there was also “a slight pickup in hedges,” as harvest operations start to move forward across Western Canada.
A firmer tone in the Canadian dollar was another bearish influence, as the strengthening currency cuts into crush margins, said participants.
On the other side, end user demand was only coming forward on a scale-down basis. However, technical support was holding.
Ongoing uncertainty over the size and quality of the Canadian canola crop helped underpin the futures.
About 11,000 canola contracts had traded as of 10:50 CDT.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:50 CDT:
