By Jade Markus, Commodity News Service Canada
WINNIPEG, November 24 – ICE Canada canola contracts were weaker at midday on Thursday, pressured by ideas that sharp gains in Chicago Board of Trade soy oil won’t last.
Yesterday CBOT soy oil gained more than six per cent in front contracts, which provided spill over support to canola.
However, ideas that the rally—which was caused by a biofuel announcement from the Environmental Protection Agency—will not last had a bearish effect on prices.
The canola market was sluggish on Thursday, lacking direction as US markets are closed for Thanksgiving.
“We’re probably going to trade in a 50 cent range for the day, then move 50 cents in a different direction at the close,” said one Winnipeg-based trader.
About 7,698 contracts had traded as of 10:27 CST.
“Very light volume, but not that bad considering what the day is,” the trader said.
Milling wheat, durum and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric tonne at 10:27 CST:
