By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 16 – Canola contracts on the ICE Futures Canada platform were weaker at midday Monday, retesting support to the downside as speculators added to their short positions.
Canola is trading below a number of major moving averages, and the bearish chart signals were behind much of the early selling pressure, according to a broker.
Overnight losses in Malaysian palm oil futures also put some spillover pressure on canola, according to participants. However, the CBOT soy complex was looking a little firmer at midsession – which provided some underlying support.
Weakness in the Canadian dollar, a lack of significant farmer selling, and solid end user demand underneath the market also helped temper the declines, according to traders.
About 9,500 canola contracts had traded as of 10:55 CST.
Milling wheat, durum, and barley futures were all untraded.
