By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 27 (CNS Canada) – ICE Futures Canada canola contracts were weaker at midday Monday, as losses in outside vegetable oil markets triggered a round of speculative selling.
“Technically, we’re breaking to the downside,” said a Winnipeg-based broker noting that a move below some key moving averages was likely bringing in some fund long liquidation. The funds had been holding a net long position of about 20,000 to 25,000 contracts to start the week.
Farmers had been keeping to the sidelines in hopes of seeing higher prices, but with end of the year bills coming due some hedges may be adding to selling pressure.
Scale-down end user demand provided some underlying support. Uncertainty over South American soybean production also continues to underpin the market.
About 11,000 canola contracts had traded as of 10:55 CST.
