By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 18 – Canola contracts on the ICE Futures Canada platform were down at midday Wednesday, with speculative selling a feature as prices dipped below nearby support.
The most active January contract was trading at fresh two-month lows below C$466 per tonne at midsession. Fund traders were said to be adding to their growing net short positions amid the bearish chart signals, according to a broker.
Losses in CBOT soybeans and soyoil put some spillover pressure on canola, contributing to the softer tone.
Scale-down end user demand on the other side, from both domestic crushers and exporters, did help temper the declines, said a broker. A weaker tone in the Canadian dollar and a lack of significant farmer selling also helped slow the downward move.
About 19,000 canola contracts had traded as of 10:38 CST.
Milling wheat, durum, and barley futures were all untraded.
