By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Feb. 7 (CNS Canada) – ICE Futures canola contracts were weaker at midday Thursday, retreating from earlier gains as losses in the Chicago Board of Trade soy complex spilled over to weigh on prices.
Ideas that China and the United States are still far apart when it comes to trade relations sparked the selling in soybeans, according to a trader. He said a general ‘risk-off’ sentiment in the broader financial markets was also weighing on the commodities, including canola.
The U.S. Department of Agriculture is set to release a number of key reports on Friday, and pre-report positioning was a feature.
Weakness in the Canadian dollar provided some underlying support for canola.
A lack of significant farmer deliveries, as temperatures remain cold across much of Western Canada, also helped limit the losses.
About 16,000 canola contracts traded as of 10:42 CST, with intermonth spreading a feature.
Prices in Canadian dollars per metric tonne at 10:42 CST:
Price Change
Canola Mar 482.60 dn 2.20
May 490.80 dn 2.00
Jul 498.20 dn 1.80
Nov 497.40 dn 0.70
