By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, July 30 (MarketsFarm) – The ICE Futures canola market was weaker at midday Thursday, posting large losses as speculators liquidated long positions ahead of the weekend.
“I think canola is being ambushed,” said a Winnipeg-based trader on the speculative money flows in the market. He said the relatively thin volumes in the canola market were allowing small amounts of money to trigger some panic long liquidation.
A move below chart support in the nearby November contract was bearish from a chart-standpoint, contributing to the declines.
However, persistent drought concerns across the Prairies remained supportive, with the nearby forecasts calling for continued heat and dryness.
Positioning ahead of the Terry Fox Day long weekend could lead to some choppiness during the session. The canola market will be closed Monday, Aug. 2, while markets in the United States will trade their usual hours.
About 15,200 canola contracts traded as of 11:11 CDT.
Prices in Canadian dollars per metric tonne at 11:11 CDT:
Canola Nov 838.50 dn 39.90
Jan 829.60 dn 35.60
Mar 821.80 dn 29.00
May 803.10 dn 28.30