By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, April 5 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were down at midday Tuesday, as losses in outside vegetable oil markets weighed on values.
CBOT soyoil futures were down by about half a cent per pound at midsession, while Malaysian palm oil futures also posted large losses in overnight activity.
Chart-based positioning, as the uptrend in canola shows signs of slowing down, contributed to the softer tone in canola, according to participants.
However, the losses were tempered by weakness in the Canadian dollar. The currency was down sharply relative to its US counterpart, which helped keep canola looking attractively priced to both exporters and domestic crushers.
The need to keep some weather premiums in the futures through the spring seeding period was also supportive, according to a broker.
About 15,000 canola contracts had traded as of 10:46 CDT.
Milling wheat, durum, and barley futures were all untraded.
