By Dave Sims, Commodity News Service Canada
WINNIPEG, June 22 (CNS) – Canola contracts on the ICE Futures Canada platform were higher at midday Friday, following gains in the Chicago Board of Trade soy complex.
Concerns over dryness on the Prairies underpinned the market.
There are ideas China will be forced to buy more canola due to its trade dispute with the United States, which was bullish.
However, new numbers show that ending stocks for 2017/18 increased by 200,000 tonnes in May to 2.7 million, which was bearish.
Canola is lagging the sharper rise in U.S. oilseeds due to technical reasons.
“When the U.S. market went down a few days ago canola didn’t go down near as much,” said a trader in Winnipeg. “So when U.S. markets come back up canola won’t go up as much either.”
About 8,500 canola contracts had traded as of 10:45 CDT.
Prices in Canadian dollars per metric ton at 10:45 CDT:
