By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Sept. 2 – ICE Canada canola contracts were weaker Wednesday morning, seeing some follow-through selling after Tuesday’s lower close as the technical bias has shifted to the downside and speculators added to their short positions.
Harvest pressure added to the softer tone in canola, as producers make deliveries for cash flow needs and end users are only buying on a scale-down basis.
Losses in Malaysian palm oil and European rapeseed futures overnight also weighed on canola, although CBOT soyoil was holding near unchanged Wednesday morning.
Statistics Canada releases its official estimates on Canadian ending stocks, as of July 31, on Thursday, and positioning ahead of the data could provide some direction on Wednesday.
About 3,800 canola contracts had traded as of 8:50 CDT.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:50 CDT:
