By Terryn Shiells, Commodity News Service Canada
Winnipeg, July 30 – The ICE Futures Canada canola market was stronger Thursday, with the most active November contract breaking back above the key C$500 per tonne level.
The gains were linked to rumours of fresh export demand from China earlier this week, according to market watchers.
Advances seen in the Chicago soy complex also provided some spillover support for canola.
The downswing in the value of the Canadian dollar added to the bullish tone, as it made canola more attractive to foreign buyers.
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Traders are also still concerned about tight supplies for the 2015/16 (Aug/Jul) crop year, as unfavourable weather has lowered production prospects. Recent heavy rains in parts of Western Canada were also said to be causing damage to some canola fields.
Though, more favourable weather has stabilized crop conditions in other parts of the Prairies over the past couple of weeks, which was overhanging prices.
The large global oilseed supply situation and expectations of heavy farmer selling at harvest this year were also bearish.
As of 10:15 CDT Thursday, about 8,550 contracts traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:15 CDT:
