By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Oct. 23 (CNS Canada) – ICE Futures canola contracts were weaker at midday Tuesday, as seasonal harvest pressure and losses in Chicago Board of Trade soyoil weighed on values.
Sunny and dry conditions across most of Western Canada this week should allow farmers to make good harvest progress, with the resulting hedge pressure finding its way into the futures market.
Chart-based speculative selling contributed to the declines, as canola tested nearby technical support.
However, solid scale-down end-user demand provided some support. Forecasts calling for a return to wet weather by the weekend also kept some caution in the market, with concerns over the yields and quality of the later-harvested fields also supportive.
About 10,200 canola contracts traded as of 10:50 CDT, with intermonth spreading a feature as traders continued to roll their positions out of the nearby November contract.
