By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Dec. 12 (CNS Canada) – ICE Futures Canada canola contracts were weaker at midday Tuesday, testing psychological support as fund traders liquidated long positions.
The January contract briefly moved below the C$500 per tonne level, which was not a major chart point but still bearish from a psychological perspective, according to traders.
“Canola’s not doing this all by itself,” said the broker, adding that losses in European rapeseed futures, Malaysian palm oil, and Chicago Board of Trade soyoil all contributed to the selling pressure in the Canadian market.
The United States Department of Agriculture (USDA) releases its monthly supply/demand report at 11:00 CST, with traders expected to focus on adjustments to the soybean ending stocks estimates.
About 13,500 canola contracts had traded as of 10:56 CST.
