By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, June 8 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were up at midday Wednesday, as a rally in the Chicago Board of Trade soy complex spilled over to provide support.
Both old and new crop soybeans shot to fresh contract highs on Wednesday, with forecasts calling for hot and dry weather across the US Midwest providing the catalyst for the move, according to participants.
Solid end user demand, as canola remains attractively priced, contributed to the gains in canola. A lack of significant farmer selling, production concerns with the European rapeseed crop, and the need to keep some weather premiums in the market were also cited as supportive influences.
However, nearby weather forecasts are relatively favourable for crop development across the Canadian Prairies, which tempered the advances.
Strength in the Canadian dollar was also putting some pressure on canola.
About 13,500 canola contracts had traded as of 10:46 CDT, with the July/November spread a feature of the activity.
Milling wheat, durum, and barley futures were all untraded and unchanged.
