By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Feb. 1 (CNS Canada) – ICE Canada canola contracts were posting small losses Monday morning, taking some direction from the softer tone in the CBOT soy complex to start the month.
Follow-through speculative selling after Friday’s lower close contributed to the early weakness in canola, as the nearby technical signals are looking bearish, according to participants.
Expectations that large South American soybean crops will soon be flooding the global market, despite persistent weather issues in some parts of the continent, were also weighing on the oilseeds in general.
However, solid exporter and domestic crusher demand did help limit the losses in canola.
Early weakness in the Canadian dollar provided some underlying support as well, according to traders.
About 3,000 canola contracts had traded as of 8:52 CST.
Milling wheat, durum, and barley futures were all untraded.
