By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 27 (MarketsFarm) – The ICE Futures canola market was weaker at midday Tuesday, as prices continued to back away from nearby highs.
“It’s stemming from long liquidation in the November (contract) as open interest is whittled down in that month,” said a Winnipeg-based trader. He noted that the selling pressure in the front month ahead of its expiry was spilling over to weigh on the more active deferred contracts as well.
“We had a good rally over the past month, and (speculators) are maybe taking some profits,” he added.
Losses in Chicago Board of Trade soyoil and a firmer tone in the Canadian dollar were also bearish for canola.
However, crush margins showed some marked improvement on Monday, which was keeping processors and exporters active on the buy side.
About 15,000 canola contracts traded as of 10:46 CDT.
Prices in Canadian dollars per metric tonne at 10:46 CDT:
Canola Nov 537.60 dn 5.60
Jan 544.50 dn 3.40
Mar 547.40 dn 3.70
May 545.70 dn 2.00