By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Dec. 13 (CNS Canada) – ICE Futures canola contracts were weaker Thursday morning, taking some direction from Chicago Board of Trade soybeans and soyoil.
Reports that China was purchasing United States soybeans once again should be supportive for the oilseeds. However, a ‘buy the rumour, sell the fact’ mentality saw soybeans move lower Thursday morning, which spilled into the canola market.
Bearish technical signals added to the softer tone in canola, according to participants.
The Canadian dollar was slightly softer in early activity, helping limit the losses in canola. Improving crush margins were also supportive.
About 5,000 canola contracts had traded as of 8:50 CST.
