By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Oct. 10 (CNS Canada) – ICE Futures canola contracts were weaker at midday Wednesday, as the market dropped in sympathy with Chicago Board of Trade soybeans and farmers started to make some harvest progress in Western Canada.
While cool and wet conditions continue to cause delays across the Prairies, “wheels are turning… and we’re seeing some harvest out there,” said a broker pointing to an increase in hedge pressure.
Bearish chart signals contributed to the declines, as Tuesday’s move below the C$500 per tonne mark in the nearby November contract brought in some speculative selling and kept buyers on the sidelines.
The United States Department of Agriculture releases updated production data on Thursday, and positioning ahead of the report accounted for some of the activity.
About 13,500 canola contracts traded as of 10:23 CDT.
