By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Aug. 30 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were weaker at midday Tuesday, as broad-based losses in the Chicago Board of Trade and seasonal harvest pressure weighed on values.
“It’s just the mood,” said a canola broker on the bearish tone in the market. He added that speculative selling in the US grains and oilseeds was pulling canola down with it.
Expectations for large crops added to the softer tone, although canola is still looking very attractively priced compared to other oilseeds and good end user demand provided underlying support.
Weakness in the Canadian dollar was another supportive influence, according to participants.
The canola harvest is underway across Western Canada, and traders are following yield reports closely.
About 8,600 canola contracts had traded as of 10:54 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
