By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 1 (MarketsFarm) – The ICE Futures canola market was stronger at midday Tuesday, as hot and dry weather forecasts provided support.
Environment Canada has issued a heat wave warning for much of the Canadian Prairies, with daytime temperatures above 30 Celsius expected over the next week. With little rain in the forecast, the hot weather should exaggerate drought concerns across the region.
Gains in the Chicago Board of Trade soy complex were also supportive for canola, with the Midwestern United States facing its own dryness concerns.
However, a firm tone in the Canadian dollar put some pressure on canola, tempering the gains as the currency climbed above the psychological 83 U.S. cents mark.
About 13,500 canola contracts traded as of 10:52 CDT.
Prices in Canadian dollars per metric tonne at 10:52 CDT:
Price Change
Canola Jul 897.20 up 7.20
Nov 732.20 up 17.00
Jan 733.00 up 19.50
Mar 727.40 up 22.90
