By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 10 (MarketsFarm) – The ICE Futures canola market was steady to higher at midday Wednesday, with the largest gains in the nearby July contract.
Speculative short-covering accounted for much of the buying interest in the July contract, as traders exited the front month. A lack of significant farmer selling also provided some support, according to a broker who noted that many producers were busy with spraying after wrapping up seeding operations.
Weather concerns in parts of the Prairies were also supportive, according to the broker. Excessive moisture in parts of Alberta and eastern Manitoba may limit acres in those areas, while other parts of Saskatchewan and Manitoba are dry and will soon need moisture.
A firmer tone in the Canadian dollar, which recovered from earlier weakness, put some pressure on canola. Losses in Chicago Board of Trade soyoil also weighed on values.
About 32,000 canola contracts traded as of 10:55 CDT.
Prices in Canadian dollars per metric tonne at 10:55 CDT:
Price Change
Canola Jul 469.80 up 2.10
Nov 471.70 up 0.20
Jan 478.30 up 0.60
Mar 483.80 up 0.70
