By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 8 (CNS Canada) – ICE Futures canola contracts were mostly lower in thin trade at midday Tuesday, as weakness in the Chicago Board of Trade soy complex weighed on values.
“We’re getting a negative from the U.S. that’s dragging us down,” said a canola trader.
The ongoing government shutdown in the United States was thought to be keeping the commodity markets in “limbo mode,” according to the trader, as the U.S. Department of Agriculture’s reports continue to be delayed.
Fund traders are believed to still be holding net short positions of about 35,000 to 40,000 contracts, “with no reason for them to be covering as the market grinds sideways.”
A lack of significant end user demand and ample visible supplies also weighed on values.
The front month January contract was up sharply in thin volumes, as someone was likely caught short and forced to bid up to exit their position.
About 4,500 canola contracts traded as of 10:59 CST.
