By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, June 25 (CNS Canada) – ICE Futures Canada canola contracts were weaker at midday Monday, taking some direction from the Chicago Board of Trade soy complex.
The ongoing trade dispute between the United States and China kept the U.S. grains and oilseeds under pressure to start the week, and the speculative selling also spilled into the canola market, according to a broker.
Expectations that Statistics Canada will raise its estimate for canola area in a report out on Friday also put some pressure on values, as traders square positions ahead of the report. The U.S. Department of Agriculture will also release acreage estimates and stocks data on Friday.
However, canola was lagging soybeans to the downside, finding some independent strength on the back of solid export demand. Concerns over variable weather patterns across the Prairies were also supportive, according to the broker who noted that many areas were in need of moisture.
About 13,500 canola contracts had traded as of 10:58 CDT.
