By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, May 6 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were up sharply at midday Friday, hitting fresh nine-month highs in the process as a rally in the CBOT soy complex and softness in the Canadian dollar provided support.
Mounting weather concerns in Western Canada contributed to the strength in canola, according to traders.
Warm and dry conditions may be allowing for a rapid start to spring seeding across the Prairies, but many areas will soon need some timely rains, said a broker. The early seeding pace also raised the possibility of frost damage if there is a late spring frost.
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In addition to commercial traders looking to book coverage, funds were also noted buyers as they add to their growing net long positions, said participants. A lack of significant farmer selling on the other side was also somewhat supportive.
Statistics Canada pegged Canadian canola stocks, as of March 31, at 7.49 million tonnes, in a report released this morning. That compares with 8.33 million tonnes at the same point the previous year.
About 9,800 canola contracts had traded as of 10:43 CDT.
Milling wheat, durum, and barley futures were all untraded.
