By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Dec. 18 (CNS Canada) – ICE Futures Canada canola contracts were weaker at midday Monday, taking some direction from soybeans at the Chicago Board of Trade.
“It just seems like we’re grinding lower,” said a canola trader on the general downtrend in place over the past month. He added that a slowdown in demand from grain companies, as they’ve widened their basis levels in the countryside, contributed to the softer tone.
Intermonth spreading was a feature of the activity, as participants rolled out of the front month before activity slows down over Christmas.
However, crush margins have shown some improvement recently, providing some underlying support.
About 19,000 canola contracts had traded as of 10:51 CST.
