By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, June 22 – Canola contracts on the ICE Futures Canada platform were up sharply at midday Monday, seeing some follow-through buying interest after Friday’s rally as both the fundamentals and technicals for the commodity remain bullish.
Both the nearby July and the more active new crop November contract broke above the psychological C$500 per tonne level on Friday, setting the stage for more gains from a chart standpoint, according to a broker.
Weather concerns across Western Canada also remain supportive. While there was some shower activity across the Prairies over the weekend, a large portion of Alberta and Saskatchewan is still in need of moisture.
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However, scale-up farmer selling did limit the upside potential. Declining crush margins and ideas that canola is looking expensive compared to other oilseeds also put some pressure on values.
About 21,000 canola contracts had traded as of 10:52 CDT.
Milling wheat, durum, and barley were all untraded.
Prices in Canadian dollars per metric ton at 10:52 CDT:
