By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, July 11 (CNS Canada) – ICE Futures canola contracts were weaker at midday Wednesday, as mounting world trade concerns weighed on values.
The United States announced it was considering placing 10 per cent tariffs on an additional US$200 billion worth of Chinese goods, with China set to reciprocate in kind. Equities and commodities around the world all fell as a result of the news, with Chicago Board of Trade soybeans setting fresh contract lows.
Speculators were noted sellers in canola, adding to their growing net short positions, according to participants. Relatively favourable crop conditions across most of the Prairies were also bearish, although some areas of concern remain.
Scale-down commercial buying helped temper the declines, as end users pick up bargains on the way down, according to a broker.
About 8,000 canola contracts had traded as of 10:38 CDT.
