By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, July 27 (CNS Canada) – ICE Futures canola contracts were higher in most months at midday Friday, although activity was thin and choppy.
Gains in Chicago Board of Trade soybeans and soyoil provided some spillover support for canola. Persistent weather concerns in parts of the Prairies also helped underpin the futures, although conditions remain favourable overall.
Results of a private crop tour of Western Canada released on Thursday predicted a slight increase in average canola yields on the year, which likely tempered the upside in the futures.
The canola contract will no longer be based out of Canada after Friday’s close, with clearing and trading operations moving to New York as of Monday, July 30. While the contract specifications will remain the same, the move may be accounting for the thin volumes on Friday, according to a trader.
About 4,300 canola contracts had traded as of 10:50 CDT.
