By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Sept. 23 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were posting small losses at midday Friday, as conflicting bullish and bearish influences kept the market trading within a narrow range.
Thursday’s news that China would allow Canadian canola shipments containing up to 2.5 per cent dockage to continue until at least 2020 remained a supportive influence, as the threat of lowering that standard to one per cent had limited export movement.
Sharp weakness in the Canadian dollar was also supportive for canola on Friday, according to traders.
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However, Chicago Board of Trade soybeans and soyoil were also posting large losses, which spilled over to put some pressure on canola.
Expectations for large crops overall, despite harvest delays in parts of Western Canada, also weighed on values, said market participants. Forecasts calling for heavy rains in parts of Saskatchewan over the weekend were also likely bringing in increased pre-weekend hedges, according to a broker.
About 12,000 canola contracts had traded as of 10:52 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
