By Phil Franz-Warkentin, MarketsFarm

WINNIPEG, May 4 (MarketsFarm) – The ICE Futures canola market was stronger at midday Tuesday, hitting fresh contract highs in many months as gains in Chicago Board of Trade soybeans and soyoil provided spillover support.
Speculative funds accounted for much of the activity, as they added to their large long positions.
“It’s very erratic, but the funds are still buying,” said a Winnipeg-based broker. He added that there was no real fresh bullish news in the grain and oilseed markets, aside from dryness concerns for the corn crop in Brazil.
He noted that the Canadian Prairies were also in need of precipitation, but thought those concerns were already factored in to the market for the time being.
A lack of significant selling pressure on the other side, as sellers appear content to watch how high price go, added to the firmer tone, according to the broker.
About 11,300 canola contracts traded as of 10:41 CDT.

Prices in Canadian dollars per metric tonne at 10:41 CDT:

Price Change
Canola Jul 886.70 up 22.70
Nov 719.70 up 9.60
Jan 714.50 up 9.40
Mar 708.00 up 8.20