By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 5 – Canola contracts on the ICE Futures Canada platform were down at midday Thursday, taking back Wednesday’s gains as a downturn in the CBOT soy complex weighed on prices.
CBOT soyoil was down by over half a cent per pound at midday, which will cut into Canadian crush margins. Malaysian palm oil also posted large losses in overnight activity.
Wednesday’s rally brought in some fresh farmer selling, which contributed to Thursday’s softer tone in canola, according to a trader.
On the other side, end user demand remains solid, while recent weakness in the Canadian dollar is also somewhat supportive.
Canola remains stuck within a well established range from a chart standpoint, with speculators and commercials on both sides of the market from one day to the next.
Just under 10,000 canola contracts had traded as of 10:54 CST.
Milling wheat and durum were both untraded, while barley was higher with 25 contracts trading in December.
