By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 12 (MarketsFarm) – The ICE Futures canola market was weaker at midday Wednesday, continuing to back away from nearby highs as bearish technical signals weighed on prices.
Speculators who had been buying canola at the start of the month have flipped to the other side to book profits, according to a broker.
Gains in the Canadian dollar, which was touching fresh six-month highs relative to its United States counterpart, also weighed on canola.
The looming Prairie harvest was another bearish influence in the background.
Chicago Board of Trade soyoil futures were posting solid gains at midday, providing some spillover support.
The United States Department of Agriculture releases updated production estimates later in the day, and any surprises in the data could sway the futures ahead of the close.
About 8,500 canola contracts traded as of 10:29 CDT.
Prices in Canadian dollars per metric tonne at 10:29 CDT:
Canola Nov 481.90 dn 2.10
Jan 488.10 dn 1.80
Mar 492.30 dn 1.50
May 495.70 dn 1.20