By Jade Markus, Commodity News Service Canada
WINNIPEG, December 30 – ICE Canada canola contracts were lower at midday on Wednesday, as traders exited long positions in an overbought market.
“I’d say we probably gained a little bit too much for the week,” said one Winnipeg-based trader. “The general feeling is that maybe we overdid this market to the upside in the last couple of days.”
Investor profit-taking also pushed the market lower, the trader said.
As the market edged lower it triggered sell-stop orders, which added to the bearish tone.
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“When the market goes down past a certain point, an order kicks in to say ‘just get me out of my long positions.’”
Light volumes and spread action at midday moved prices more erratically than they would likely be otherwise.
The Canadian dollar was weaker relative to its US counterpart at midday on Wednesday.
“The dollar is supportive, but you wouldn’t notice that based on the way things are performing here today.”
About 9,038 canola contracts had traded as of 10:35 CST.
Milling wheat, durum, and barley futures were all untraded and
unchanged.
Prices in Canadian dollars per metric tonne at 10:35 CST:
