By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, August 26 – Canola contracts on the ICE Futures Canada platform were weaker at midday Wednesday, as bearish technical signals and losses in many outside vegetable oil markets spilled over to weigh on prices.
CBOT soyoil futures are trading at their weakest levels in eight years, while Malaysian palm oil and European rapeseed futures have also been under pressure recently.
The nearby technical bias is pointing lower for canola, and speculative selling pressure contributed to the losses, according to participants.
However, the November contract found some support to the downside and was holding above the lows hit earlier in the week.
The need to keep some weather premiums in the Canadian futures helped underpin canola as well, as the market will likely need to ration demand going forward, said traders.
About 16,000 canola contracts had traded as of 10:54 CDT.
Barley futures were down at midday, with fifty contracts traded in two-sided commercial activity.
Milling wheat and durum were both untraded.
Prices in Canadian dollars per metric ton at 10:54 CDT:
