By Dave Sims, Commodity News Service Canada
WINNIPEG, Aug. 20 (CNS) – Canola contracts on the ICE Futures platform were lower at midday Monday, as the heatwave that had gripped Western Canada for much of the previous week, began to dissipate.
Values were due for a correction after experiencing sharp gains over the past week.
The front-month contracts ran into some technical resistance.
Recent forecasts suggest the soybean crop in the United States could be record large, which was bearish for values.
“Canola is staying expensive though,” noted a trader in Winnipeg. “That’s a sign of strength.”
The technical bias is pointed higher and canola took strength from gains in Chicago Board of Trade soybeans and soyoil.
About 4,800 canola contracts had traded as of 10:45 CDT.
Prices in Canadian dollars per metric ton at 10:45 CDT:
