By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 14 (CNS Canada) – ICE Futures canola contracts traded to both sides of unchanged in choppy overnight activity, but were turning lower Wednesday morning as speculative selling weighed on values.
Bearish technical signals and ample supplies in the commercial pipeline accounted for some of the weakness, as the January contract moved below chart support at $480 per tonne.
Recent weakness in outside vegetable oil markets, including palm oil and soyoil, contributed to the softer tone in canola.
However, strength in Chicago Board of Trade soybeans provided some underlying support.
Uncertainty over the size and quality of this year’s Canadian canola crop also kept some caution in the market.
About 3,800 canola contracts had traded as of 8:53 CST.
