By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 9 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were weaker at midday Monday, as speculative traders added to their net short positions.
“Somebody’s standing on it,” said a broker on the weaker tone in canola adding that “it’s probably spec traders who are short.”
He said bearish technical signals were likely behind the speculative selling, with a lack of significant demand on the other side adding to the losses.
However, gains in the Chicago Board of Trade soy complex provided underlying support, and the broker expected canola may turn higher before the close.
“Canola looks pretty cheap, which should attract some commercial buying interest,” he said.
About 6,000 canola contracts had traded as of 10:37 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged.
