By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, June 21 (CNS Canada) – ICE Futures Canada canola contracts were weaker at midday Wednesday, seeing some follow-through selling after yesterday’s move below nearby support.
The July contract broke below the 200-day moving average on Tuesday and the shorter-term 20-day average on Wednesday, which was bearish from a chart standpoint.
Improving weather conditions in parts of Western Canada, losses in Chicago Board of Trade soybeans, and large South American soybean crops all added to the softer tone in canola, according to participants.
However, persistent weather concerns in parts of the Prairies remained supportive, helping limit the losses.
Tightening old crop supplies and the need to ration some demand going forward also provided some support, according to traders.
About 12,000 canola contracts had traded as of 10:45 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
