By Dave Sims, Commodity News Service Canada
WINNIPEG, May 13 – ICE Canada canola contracts were higher Wednesday morning, enjoying spillover support from the US soy complex.
European rapeseed futures were also higher which lent support to the market.
Yesterday’s USDA crop report predicted a smaller world canola crop in 2015 which was bullish for values.
Reports of frost damage to some early-seeded crops in Western Canada were also supportive.
Canola has fallen from its highs on Monday which has prompted talk of a recovery bounce.
However, the Canadian dollar was stronger against its American counterpart which made canola less attractive to domestic crushers and exporters.
The USDA crop report also predicted massive world supplies of soybeans which was bearish for canola.
Malaysian palm oil was lower which helped limit the gains.
About 2,000 canola contracts had traded as of 8:35 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:35 CDT:
