By Jade Markus, Commodity News Service Canada
WINNIPEG, March 27 – ICE Canada canola contracts were higher at midday on Monday, as the market recovered from earlier weakness.
In early activity on Monday, canola felt pressure from unconfirmed reports of cancelled orders at the tail-end of last week.
“There was some initial panic-selling Monday morning, as latecomers digested the news,” said Jamie Wilton, senior commodity futures specialist at RJ O’Brien and Associates Canada Inc.
“Bit of a pop down, but it seems like we’re finding support here now.”
Fund traders also have a “fairly healthy-sized short,” Wilton said.
After earlier advances, the Canadian dollar lost ground against its US counterpart, which further underpinned canola.
But weakness in outside markets limited canola’s upside.
“Palm oil was sharply lower overnight, so I think the whole veg oil side of things is also soft here again,” Wilton said.
About 14,990 contracts had traded as of 11:04 a.m. CDT.
Milling wheat, durum and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric tonne at 11:04 a.m. CDT:
