By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, July 18 (CNS Canada) – ICE Futures canola contracts were stronger Wednesday morning, as gains in Chicago soyoil and weakness in the Canadian dollar provided support.
Dryness concerns in parts of Western Canada added to the firmer tone, with hot temperatures cutting into yield prospects as the canola crop goes through the pod filling stage.
While forecasts are calling for much needed rain in some areas, the coverage may be spotty and traders should be expected to keep a weather premium in the market for the time being.
CBOT soybeans were turning lower after overnight gains, putting some pressure on canola. The general technical trend also remains pointed lower.
About 3,800 canola contracts had traded as of 8:54 CDT.
