By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 20 (CNS Canada) – ICE Futures Canada canola contracts were weaker Monday morning, taking some direction from the Chicago Board of Trade soy complex.
Chart-based speculative selling contributed to the declines, as the January contract backed away from resistance around the C$520 per tonne level.
However, solid end user demand from both exporters and domestic crushers provided support underneath the market. The Canadian dollar was slightly softer in early activity, which also helped underpin the canola market.
U.S. markets will be closed Thursday for Thanksgiving, and positioning ahead of the holiday could lead to some price swings in the futures markets as traders square positions and volumes drop off over the next few days.
About 3,700 canola contracts had traded as of 9:05 CST.