By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 2 (CNS Canada) – ICE Futures canola contracts were posting small losses Friday morning, retreating from overnight gains as both the fundamentals and technical remain somewhat bearish for the market.
Farmers delivered roughly 500,000 tonnes of canola into the commercial pipeline during the week ended Oct. 28, according to the latest Canadian Grain Commission report. The heavy deliveries brought visible supplies to nearly 1.5 million tonnes, which should be limiting the need for end-users to bid up the market.
A general downtrend remains in place on the charts, making Thursday’s bounce higher a selling opportunity from a technical perspective.
However, continued strength in the Chicago Board of Trade soybeans, amid heighted expectations over a possible easing of trade tensions between the United States and China, provided some support. U.S. President Donald Trump has indicated that a deal was imminent, although traders question how much stock to put in those pre-midterm-election comments.
About 5,000 canola contracts had traded as of 8:54 CDT.
