By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 6 (MarketsFarm) – ICE Futures canola contracts were weaker at midday Wednesday, retreating from earlier gains as the underlying technical and fundamentals remain bearish.
Profit-taking after the sharp losses in recent sessions was initially supportive for canola. That buying interest was short lived and “we’re looking for demand again,” said a trader on the eventual turn lower.
Ongoing concerns over trade disruptions with China accounted for much of the weakness in canola, according to the trader.
Bearish chart signals and spillover from declines in Chicago Board of Trade soybeans also weighed on values.
The Canadian dollar was also weaker at midday, losing roughly half of a cent relative to its United States counterpart. The softer currency provided some underlying support for canola, as crush margins improved.
About 10,000 canola contracts traded as of 10:45 CST.
Prices in Canadian dollars per metric tonne at 10:45 CST:
Price Change
Canola May 456.30 dn 1.50
Jul 465.00 dn 1.40
Nov 477.90 dn 1.70
Jan 484.60 dn 1.80
