By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, July 14 – Canola contracts on the ICE Futures Canada platform were posting small losses at midday Tuesday, in sympathy with CBOT soyoil.
Speculators booking profits on their large long positions were behind much of the selling pressure in the lightly traded canola market, according to participants.
Recent rainfall across parts of Western Canada also helped improve the production prospects somewhat, which added to the softer tone, according to a broker. However, he added that the crop will still end up well below average, limiting the downside potential.
That production uncertainty was thought to be keeping some end user demand in the market, while also limiting farmer selling pressure.
The Canadian dollar was holding near unchanged at midday Tuesday, providing little direction for the canola market.
About 5,300 canola contracts had traded as of 10:48 CDT.
Milling wheat, durum, and barley were all untraded.
Prices in Canadian dollars per metric ton at 10:48 CDT:
