By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, April 27 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were weaker at midday Wednesday, retreating from nearby highs as investors took profits and buyers moved to the sidelines.
After settling above the psychological C$500 per tonne mark in the July contract on Tuesday, canola was said to be due for a correction from a chart standpoint. Exporters and domestic crushers were also backing away at the higher levels, according to a trader.
Losses in CBOT soybeans and soyoil contributed to the softer tone in canola, said participants.
However, tightening old crop supplies and the need to keep some weather premiums in the futures heading into the new growing season provided underlying support.
Slight weakness in the Canadian dollar relative to its US counterpart helped limit the losses as well.
About 10,300 canola contracts had traded as of 10:51 CDT.
Milling wheat, durum, and barley futures were all untraded.
