By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 30 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were down sharply at midday Monday, as losses in the Chicago Board of Trade soy complex and gains in the Canadian dollar weighed on values.
Speculators were noted sellers, as they had built up sizeable long positions in canola that they were now liquidating, according to a broker.
He said there was little fundamental reason for the declines, with the general sense of uncertainty over US trade policy a major catalyst in the selloff.
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“It’s a mood thing, spinning off everything that’s happening with the US government right now,… the money is just flushing out,” said the broker.
However, canola was holding up reasonably well compared to soybeans, lagging to the downside as solid end user demand provided some support.
“Typically, whenever there’s a big move in the soy market, canola will hang back and ‘wait and see’ because these moves can retrace quickly,” said the broker.
About 24,000 canola contracts had traded as of 10:45 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged.
