By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 14 (CNS Canada) – ICE Futures canola contracts were weaker at midday Wednesday, with spreading against Chicago Board of Trade soybeans behind some of the selling pressure.
While soybeans were higher at midday, soyoil was holding steady. Some speculators were likely adjusting positions by selling canola and buying soybeans amid ideas that canola was still looking relatively expensive, according to a broker.
A move below psychological support at C$480 per tonne in the January canola contract was also bearish, with the next level of support seen at C$475, the broker added.
However, activity was choppy and scale-down end-user demand provided some support. Recent weakness in the Canadian dollar also helped underpin canola.
About 8,000 canola contracts traded as of 10:43 CST.
