By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, July 5 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were down sharply at midday Tuesday, as losses in the Chicago Board of Trade soy complex weighed on values.
“The funds threw in the towel today,” said a broker on the heavy selling on both sides of the border. Soymeal futures were posting limit-down declines in some months, while soybeans, soyoil, and canola were all posting sizeable losses as well.
He added that North American crops were in reasonable shape overall, with nothing really changing from a fundamental standpoint.
However, canola is still looking relatively cheap compared to soybeans, and lagged the soy complex to the downside.
“Canola may still go down, but it will just go down more slowly,” said the broker.
A weaker tone in the Canadian dollar, which was down by half a cent relative to its US counterpart, was also somewhat supportive for canola.
About 12,000 canola contracts had traded as of 10:46 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
