By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 9 (CNS Canada) – ICE Futures canola contracts were weaker at midday Friday, as ample supplies in the commercial pipeline, bearish technical signals, and spillover from declines in Chicago Board of Trade soyoil all weighed on values.
“The trend is your friend… and canola has no place to go but down,” said a Winnipeg-based analyst.
Weekly Canadian Grain Commission data showed that visible canola supplies in the commercial pipeline grew to nearly 1.5 million tonnes during the week ended Nov. 2, as exports were down and farmer deliveries remained solid.
The most active January contract traded briefly below the psychological C$480 per tonne mark for the second-straight session, but managed to move back above that level by midsession.
While CBOT soyoil futures were lower, soybeans were stronger at midday.
The canola market will be closed on Monday, Nov. 12, in lieu of Remembrance Day. Positioning ahead of the Canadian long weekend kept some caution in the market.
