ICE canola higher in early trade

By Phil Franz-Warkentin, Commodity News Service Canada

WINNIPEG, July 9 – ICE Canada canola contracts were stronger Thursday morning, seeing a correction higher amid ideas that Wednesday’s losses were overdone.
Ongoing concerns over the state of the North American crops remained a major supportive factor in the futures, with dryness persisting in Western Canada and excess moisture in the US Midwest. Forecasts are looking hot and dry over the weekend across much of the Canadian Prairies.
Gains in CBOT soybeans and soyoil provided some spillover support for canola as well, according to participants. The USDA releases updated supply/demand estimates on Friday, and positioning ahead of that report was expected to be a feature in the markets.

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Technical resistance did limit the upside potential in canola, amid ideas that the Canadian oilseed is looking overpriced compared to other options. A firmer tone in the Canadian dollar was also somewhat bearish, although the currency has lost considerable ground to its US counterpart in recent days.
About 4,100 canola contracts had traded as of 8:50 CDT.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:50 CDT: